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We’ve sold most of our assets that we have depreciated. These were sold for the original costs. The remainder assets are either worn out and trashed or we kept for personal use as the business is now closed. So how is this record in CCA in a T2 tax return.
For example: $30,000 worth of furniture was sold for $30,000 (depreciated value is $25,000)
Car $3000 no sold (depreciated value $1700) we kept since its 10 years old an might be useful to keep it around.
Printer $50. trashed.
Hi Ron,
Before a terminal loss can be claimed and a CCA class ‘closed’, all of the assets in that class have to be disposed / sold / thrown away – nothing can be left in that class.
In the case of the furniture, assuming nothing is left, recapture of CCA for $5,000 should be recorded in the company’s income. This is calculated as the difference between the sales proceeds ($30,000) and the depreciated value ($25,000). The car will continue to be depreciated until it is thrown away or sold. A terminal loss can be claimed for the printer for $50 (depreciated value), so long as there are no other assets in the CCA Class for Computers & Related Equipment (Class 50).
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