Chapter5 - Depreciable and Eligible Capital Property...

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Depreciable and Eligible Capital Property Chapter 5 James B. MacNeill
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Depreciable and Eligible Capital Property Section 13(21) Contains the Statutory Legal Rules Regulation 1100 Explains How They Work Schedule II Contains the Asset Classes and Rates
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Classes of Assets C lass Rat e Desc rip tion 1 4% Buildings 3 5% Buildings Acquired Before 1988 8 20% Equipment, Catch-All Class 10 30% Automobile, Computers 10 .1 30% Passenger Vehicles Over $30,000 12 100% Small Tools 13 5-yr. Straight-Line Leasehold Improvements 14 Over Life Patents and Franchises
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Basic Rules Capital Cost is Added to Each Class Proceeds, Up to Original Cost is Subtracted Appropriate Percentage is Taken on Year-End Balance Only 1/2 of Capital Cost is Added in Year of Acquisition to Determine Basis for Claim If Balance is Negative, it is Taken into Income Terminal Loss is Allowed if Balance is Positive but No Assets Remain 20(16)
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Half-Year Rule All Classes, Except 12 Paragraphs (a), (b), (c), (e) to (i), (k), (l), and (p) to (s) And Classes 14, 15, and 23 Regulation 1100(2)
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Chapter5 - Depreciable and Eligible Capital Property...

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