Terminal Loss - When a depreciable property, plant and equipment, or capital property is sold, its capital cost allowance (CCA) is the expensing, over a period of years, of the cost of that fixed asset (except land), usually based on the estimated useful life of it, that is allowed to be expensed for tax purposes, except land.
(CCA) class is reduced by deducting the lower of its original cost, or its proceeds of sale. If all the assets in a class have been sold, but at the end of the fiscal year there is still a balance of undepreciated capital cost (UCC) remaining in the class, this balance can be fully written off against business or property income as a "terminal loss".
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