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New Member
posted Oct 30, 2019 6:42:58 AM

I was told that I can claim the CCA for my Solar panels against all Income and not necessarily only against the Solar Income. I have earned $300 but paid $30,000 for it.

I was told that I can claim the CCA for my Solar panels against all Income and not necessarily only against the Solar Income. So If I have only earned $300 in the year I installed the solar panels and paid $30,000 for the panel installation, how much can I claim for CCA? It seems weird that I have $300 Income and $15000 deduction, or does this create a Net Loss which can be transferred to future years?

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1 Best answer
New Member
Oct 30, 2019 6:43:02 AM

Except for certain circumstances, the CCA is limited to how much is needed to reduce your income from the panels to zero.  Please refer to the following link for more information:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/other-topics-businesses/ontario-s-fi...

8 Replies
Moderator
Oct 30, 2019 6:42:59 AM

Do you use these solar panels just for business or do you get personal use from them (i.e. they are on your home)? Is your other income business income? There are limits on claiming CCA on salary & commission income.

New Member
Oct 30, 2019 6:43:00 AM

I do no not use the panels for myself I sell the electric production directly to the local Hydro company. I have no other businesses, have a full time job and work from home. The panels are fixed to my roof

New Member
Oct 30, 2019 6:43:02 AM

Except for certain circumstances, the CCA is limited to how much is needed to reduce your income from the panels to zero.  Please refer to the following link for more information:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/other-topics-businesses/ontario-s-fi...

New Member
Oct 30, 2019 6:43:03 AM

Great answer . Thank you. So if I deduct 50% cca and only made 300 then my income is zero. Is the loss created by the cca carried forward to future years or so I loose that deduction capacity?

New Member
Oct 30, 2019 6:43:05 AM

The cca rate is the maximum that can be claimed.  So if your panels were $10,000 and the CCA max was $5,000 but you only had a profit of $300, then you would use $300 CCA and the undepreciated balance of $9700 would carry forward to the following year, at which point you could use a maximum of 50% of $9700.

New Member
Oct 30, 2019 6:43:06 AM

Whow thanks for the clarity this was a great answer

New Member
Oct 30, 2019 6:43:08 AM

I akso work from home for my full time employer and i was wondering if i could deduct the same proportional amount say 14% of office space for home renovat ui ons as wekl...or dies it have to be specifix to the iffice itself?

New Member
Oct 30, 2019 6:43:09 AM

If my net revenue is 0, do I need to report anything?