How do I reduce Capital Cost Allowance

[dioria]

I'm going through the Turbo Tax review portion and it has a couple of tax-savings opportunities. See below for the two suggestions.

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1) Your non-refundable credits exceed your tax payable. You can carry all or a portion of your medical expenses forward to next year. To do this remove the amounts and save your receipts for use next year. For amounts from T4 Box 85 or T4A Box 135 delete amounts from slip and add as receipt next year.

2) Your non-refundable credits exceed your tax payable. Consider reducing Capital Cost Allowance (CCA) on fixed assets in your self-employment or rental statements.

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When I remove any medical expense or CCA item for this year, my balance owing increases. I don't understand how this is tax-saving.  I don't know how or if it will negatively affect me if I left it as is or how it will benefit me to carry it over for following years.

[TurboTaxGinette]

These are only suggestions which you do not have to follow. As mentioned you can play with the numbers by removing part of the medical expenses and see if your refund changes. When it is no longer beneficial to your refund, you have reached the right amount to be used towards lowering your taxes and can save the remainder for next year. Same goes with the CCA.

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