CTP_(08)_Chapter_04 - Chapter 4 Capital Cost Allowances And...

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Chapter 4 Capital Cost Allowances And Cumulative Eligible Capital
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© 2008, Clarence Byrd Inc. 2 General System ITA 18(1)(b) Prohibits Deduction Of Capital Costs ITA 20(1)(a) Permits Deduction Of CCA
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© 2008, Clarence Byrd Inc. 3 Tax Vs. Accounting Terminology CCA Vs. Amortization Capital Cost Vs. Cost UCC Vs. Net Book Value Additions Accounting – Individual Assets Tax – Aggregated Classes
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© 2008, Clarence Byrd Inc. 4 Tax Vs. Accounting Write-Offs Accounting Variety Of Methods Applied Consistently Tax Declining Balance (Some Straight-Line) Maximum Specified (Consistency Not Required)
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© 2008, Clarence Byrd Inc. 5 Tax Vs. Accounting Dispositions Accounting Proceeds Less NBV = Gain (Loss) Individual Assets Tax Subtract POD From Class Recapture, Terminal Loss, Capital Gain, Or No Tax Effect
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© 2008, Clarence Byrd Inc. 6 Additions General Rules Capital Assets Only Usual Accounting Additions Capitalization Of Interest Can elect to include Generally will not
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© 2008, Clarence Byrd Inc. 7 Additions General Rules Government Assistance Deducted Similar to accounting rules Non-Arm’s Length Transactions May alter the values used GST Considerations Included if non-refundable
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© 2008, Clarence Byrd Inc. 8 Additions Available For Use Rules General Criteria First Used By Taxpayer 2 nd Taxation Year After Year Of Acquisition Public Companies: First Year Amortization Is Taken Vehicles: Licence Acquisition Rules For Buildings Substantially All (90 percent) Used 2 nd Taxation Year After Year Of Acquisition
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© 2008, Clarence Byrd Inc. 9 Segregation Into Classes Importance Class 12 At 100% Class 1 At 4% Mistakes Are Costly
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This note was uploaded on 07/24/2011 for the course ACCT 3335 taught by Professor Chong during the Spring '11 term at Kwantlen Polytechnic University.

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CTP_(08)_Chapter_04 - Chapter 4 Capital Cost Allowances And...

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