Canadian T2 - Schedule 8 CCA and the work sheet S8Class - are each CCA Item (in a class) to be listed Individually or together?

Forum|Forum|5 years ago
November 24, 2020
1 reply
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When Completing a Canadian Corporate T2 with Profile T2, in the S8Class CCA Detail, when adding new items & disposing of items in the same class (e.g. adding a new Class 10 Pick Truck, and removing an Old Class 10 Pickup Truck) are we supposed to enter the 2 items as "separate" items in the CCA DETAIL S8Class worksheets or are we supposed to enter the info on just 1 page (CCA Item #1 as an example)?

ProFile (Canada)

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Best answer by DCA2

Items belonging to the same class can be listed separately if you so choose but usually it's easier to aggregate them. As to your pickup truck example, the CRA specifies that class 10 vehicles should be grouped in one class. A more illustrative example is class 8. Suppose you have class 8 general machinery and equipment for your business - furniture, fixtures, shelving, whatever. Any new assets would be grouped with the existing class 8 assets. Suppose, however, you bought a specific class 8 asset on which you don't want to claim depreciation, maybe because you're planning to re-sell it for a capital gain and you don't want to pay the tax on recapture. You would list that class 8 asset separately. Hope this helps.

D

DCA2Answer

Level 3

Items belonging to the same class can be listed separately if you so choose but usually it's easier to aggregate them. As to your pickup truck example, the CRA specifies that class 10 vehicles should be grouped in one class. A more illustrative example is class 8. Suppose you have class 8 general machinery and equipment for your business - furniture, fixtures, shelving, whatever. Any new assets would be grouped with the existing class 8 assets. Suppose, however, you bought a specific class 8 asset on which you don't want to claim depreciation, maybe because you're planning to re-sell it for a capital gain and you don't want to pay the tax on recapture. You would list that class 8 asset separately. Hope this helps.

L

Louis Kam

Level 5

And real property MUST be added separately.

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