Income reported to Revenue Canada / Quebec (non exhaustive):
Heat
Electricity
Insurance
Maintenance
Mortgage interest
Property taxes
Other expenses (specify)
Kilometres you drove in the tax year to earn business income
Total kilometres you drove in the tax year
Fuel and oil
Interest
Insurance
Licence and registration
Maintenance and repairs
Leasing payments
Other expenses
Business parking fees
Supplementary business insurance
CCA on motor vehicles
- Inventory Valuation:
Add all expenses pro-rate according to business personal use, add any further expenses like business parking or supplementary business insurance cost
Class 1 – Buildings acquired after 1987 (4%) Class 1 is a 4 percent declining balance class. If a rental building with a cost of $50,000 or more is involved, it must be allocated to a separate class 1.
Class 1- Buildings acquired after March 19, 2007 and used 90% in manufacturing and processing (Total of 10%). To qualify the building must be allocated to a separate class 1.
Class 1 – Buildings acquired after march 19, 2007 and not meeting the M&P criteria (Total of 6%) To qualify the building must be allocated to a separate class 1.
Class 3 - Buildings Pre-1988 (5%) Class 3 is a 5 percent declining balance class. Separate classes were required for each rental building with a cost of $50,000 or more. Any additions or alterations made after 1987 to a Class 3 building that does not exceed the lesser of the following two amounts:
*If there is a terminal loss on the building and a capital gain on the land, reduce the terminal loss of the building to the extent of the capital gain on the land.
Class 8 - Various Machinery, Equipment, and Furniture (20%) Class 8 is a 20 percent declining balance class and includes most machinery, equipment, structures such as kilns, tanks and vats, electrical generating equipment, advertising posters, bulletin boards, tools > 500$, and furniture not specifically included in another class.
Note the following:
Individual photocopiers, fax machines, and pieces of telephone equipment purchased for $1,000 or more can be allocated to a separate Class 8 at the election of the taxpayer.
Class 10 - Vehicles (30%) Class 10 is a 30 percent declining balance class. It includes vehicles (other than Class 10.1 see below), automotive equipment, trailers, wagons, contractors' movable equipment, mine railway equipment, various mining and logging equipment, and TV channel converters and decoders acquired by a cable distribution system.
Class 10.1 - Luxury Cars (30%) Class 10.1 is a class established for passenger vehicles with a cost in excess of an amount prescribed in. For cars acquired in 2001 through 2006, the prescribed amount is $30,000 (including GST and PST). Like Class 10, where most other vehicles remain, it is a 30 percent declining balance class.
Note the following:
-Each vehicle must be allocated to a separate Class 10.1.
-The addition is limited to the prescribed amount ($30,000)
-In the year in which the vehicle is retired, one-half of the normal CCA for the year can be deducted even though there will be no balance in the class at the end of the year.
-No recapture or terminal losses are recognized for tax purposes.
Class 12 - Computer Software and Small Assets (100%) No half-year rule. Class 12 includes computer software that is not systems software (ex. Microsoft Office), books in a lending library, dishes, cutlery, jigs, dies, patterns, uniforms and costumes, linen, motion picture films, and videotapes. Dental and medical instruments, kitchen utensils, Tools < Proposed 500$ and present $200
This class is subject to a 100 percent write-off in the year of acquisition.
Class 13 - Leasehold Improvements (Straight-Line) CCA must be calculated on a straight-line basis for each capital expenditure incurred. The maximum deduction will be the lesser of:
1/5 of the capital cost of the improvement; and the capital cost of the lease improvement, divided by the lease term (including the first renewal option, if any).
Note the following:
Lease term includes first renewal option;
Half year rule applies but based on ½ of straight line basis.
The lease term is the # of full 12 month periods from the beginning of the taxation year in which the particular leasehold improvement is made until the termination of the lease.
If lease term exceeds 40 years, it is limited to 40 years.
Class 14 - Limited Life Intangibles (Straight-Line, No Half-Year Rules Apply) Class 14 covers the cost of intangible assets with a limited life. They are subject to straight-line amortization over their legal life. (Copyrights, franchises, licenses)
Note the following:
CCA should be calculated on a pro rata basis (daily) in the year of acquisition and the year of disposition.
Half-year rules are not applicable to this class.
Patents, which are usually included on Class 44, can be included in Class 14 if taxpayer elects.
Class 43 - Manufacturing and Processing Assets (30%)
Note the following:
Manufacturing and processing assets purchased for $1,000 or more can be allocated to a separate Class 43.
Class 29 for M&P assets purchased after March 19, 2007 (50%)
Class 44 - Patents (25%) They are subject to write-off at a 25 percent declining balance rate.
Class 45 - Computer Hardware and Systems Software (Acquired between 2004- 2007) (45%)
Class 50 - Computer Hardware and Systems Software (After 2007) (55%)
Class 52 - Computer Hardware and Systems Software (Acquir 2009- 2011) (100%)
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