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I would like to know the specific rules around carrying forward unused CCA. There is an option through Turbo tax to override the CCA you can claim for the year, so it can be carried forward, and I was told that when you file that amount is registered with CRA, and that you can carry forward any part of the CCA for a year, but I also understand there may be some restrictions. Can you tell me what those are?
Hi Janet, thanks for your question. CCA is a discretionary deduction. You can choose to claim it in one year, and not the next – it’s totally up to you. When you claim CCA in a year, the UCC (undepreciated capital cost) is reduced by the amount of the CCA claimed in that year.
If you do not claim all of the allowed CCA for the year, then the Undepreciated Capital Cost does not change and carries forward to the next year.
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