This workchart allows you to enter details on additions and dispositions of classes other than classes 10.1, 13 and 14 on Schedule 8, Capital Cost Allowance (CCA) Workchart (Jump Code: 8 WORKCHART). This workchart is a multiple copy form: each copy is summarized on a line in the table, Class Property History, which can be found at the end of the details on the given class. Each line in this table corresponds to a copy of the workchart.
With the collected data, it is possible to calculate the additions that were made in the taxation year on lines 203, Additions (property subject to subsection 1100(2) ITR) and Additions (property not subject to subsection 1100(2) ITR), on the three lines Cost of additions included on line 203 that are AIIP or ZEP and on line Cost of additions included on line 203 that are DIEP, as well as the dispositions on line 207, Dispositions, and on line 234, Proceeds of disposition of DIEP included on line 207, in the Capital Cost Allowance (CCA) Workchart (Jump Code: 8 WORKCHART). At the time of disposition, the UCC of the class will be reduced by the lesser of the adjusted cost base of the property or the net proceeds on disposition of the subject property. In addition, if the property is identified as a qualifying property investment or a property qualifying for child-care space creation qualifying for the investment tax credit, it will be carried over to Part 4 of Schedule 31, Investment Tax Credit – Corporations (Jump Code: 31) corresponding to this credit.
Data can be entered on lines 203 and 207, because using the Additions and Dispositions Workchart is optional.
Consequently, lines 203, Additions (property subject to subsection 1100(2) ITR), and Additions (property not subject to subsection 1100(2) ITR), as well as line 207 of a given class in Schedule 8, Capital Cost Allowance (CCA) Workchart, become calculated cells when this workchart is used and the addition date of the property or the disposal date is included in the corporation’s taxation year. If amounts were previously entered on one of these lines, they will be retained as overridden amounts once the calculations have been enabled using the new Additions and Dispositions Workchart. You will then be able to validate the information, and then remove the overridden amount.
It is possible to specify whether the dispositions made in the year are full or partial dispositions of a given property in a class by using the appropriate drop-down menu. Moreover, in the case of a partial disposition, you must calculate the adjusted capital cost attributable to the portion of the property that is being disposed of and enter it on the line If it is a partial disposition, enter the adjusted cost base amount for this disposition.
Only the dispositions whose disposition date is part of the current year are considered when calculating the CCA.
If the partial disposition occurred in a prior year, adjust the amount on the line Adjusted cost base of partial dispositions in prior years accordingly, if it has not already been calculated after the file is rolled forward.
Information relating to zero-emission vehicles
For property included in class 54 identified as a zero-emission passenger vehicle, the “Addition and disposition of a zero-emission passenger vehicle” subsection allows you to calculate the capital cost eligible for CCA in the year of acquisition (taking into account the limit of $55,000 plus sales taxes) as well as the proceeds of disposition in the year of disposition of the property.
For more information on zero-emission vehicles, consult the “Classes 54 and 55 (zero-emission vehicles)” section in the Schedule 8, Capital Cost Allowance (CCA) help topic.
Property qualified for accelerated depreciation
Is the property an AIIP?
This custom question allows you to identify property for a CCA class other than 10.1, 13 and 14 acquired after November 20, 2018, and available for use in the taxation year before 2028, that qualified for the increased CCA under subsection 1100(2) ITR. When the date of acquisition of the property is part of the taxation year and is after November 20, 2018 and before 2028, the answer to this question is set to Yes and the amount entered on the line Adjusted capital cost will be added, according to the relevant period, to one of the lines Cost of additions included on line 203 that are AIIP or ZEP (Available for use before 2024, Available for use in 2024 and 2025 and Available for use in 2026 and 2027) in the corresponding copy of the Capital Cost Allowance (CCA) Workchart.
Is the property a designated immediate expensing property (DIEP)?
This custom question allows you to identify property for a CCA class other than 10.1, 13 and 14 acquired after April 18, 2021, and available for use in the taxation year before 2024, that qualified for the immediate expensing measure. When the Acquisition date entered for the property is part of the taxation year and is after April 18, 2021, and before 2024, the answer to this question is set to Yes and the amount entered on the line Adjusted capital cost will be added to line 232, Cost of additions included on line 203 that are DIEP in the corresponding copy of the Capital Cost Allowance (CCA) Workchart.
Is the property a property that qualifies for the accelerated depreciation special rules in Québec?
This custom question allows you to identify property in classes 14.1, 44 and 50 that is qualified for the accelerated depreciation special rules in Québec. When the corporation’s taxation year ends after December 3, 2018, class 50 is selected and the date of acquisition of the property is part of the year of acquisition and is after December 3, 2018, the answer to this question is set to Yes. When the answer to this question is Yes, the amount entered on the line Québec - Adjusted capital cost will be added, according to the relevant period, to one of the lines Capital cost included on line 203 of property qualified for the accelerated depreciation special rules in Québec (Available for use before 2024, Available for use in 2024 and 2025, and Available for use in 2026 and 2027) in the corresponding copy of the Capital Cost Allowance (CCA) Workchart.
For more information, consult the section entitled “Property qualified for accelerated depreciation” in the Help topic Schedule 8, Capital Cost Allowance (CCA).
Rolling forward data
The corresponding copies of the Additions and Dispositions Workchart and the Class property history table will be rolled forward provided the corporation has not completely disposed of all of the property in the class. When, in a given fiscal year, the corporation fully disposed of all of the property in the class in the current year or in a prior year and the UCC in this class is of $0, the affected class will not be rolled forward the next year.
Example: If the UCC is equal to $0 as a result of the amortization of all of the property in the class and that, in the class, there is at least one property (i.e. a copy of the Additions and Dispositions Workchart or a line in the history table), whose disposition date has not been entered or, in the case of a partial disposition, whose date of disposition has been entered, the data in the Capital Cost Allowance (CCA) Workchart, in the Class property history table and in the Additions and Dispositions Workchart will be rolled forward.
All of the property in the Class property history table will be retained, whether it was fully disposed of or not, in order to always retain the complete history of all of the property in a given class.
The information relating to the adjusted cost of a property that has been partially disposed of in a given year will be added the following year in the Additions and Dispositions Workchart to the line Adjusted cost base of partial dispositions in prior years. Note that the date of the partial disposition of a property will not be retained nor rolled forward in the Additions and Dispositions Workchart.
At the beginning of the fiscal year, you will still have the option to retain or delete a copy of the Additions and Dispositions Workchart for the property that was fully disposed of in a prior year. This way, you may choose to retain, in the class property history, only the property that has not yet been sold.
We added extra lines that you can use to note and store information about the land’s initial capital cost and adjustments related to the acquisition of an immovable or a building.
See Also