Hello,
Please, advise for how long I could claim CCA. E.g., If I bought a computer that would be class 50 for $3,000. In the accounting straight-line depreciation it could be 3 years ($1,000 per year) with a $0 residual. For CCA however it would be 1/2 x 55% x $3,000 for the first year, then 55% for the second one. Could it go beyond the 3 years in the accounting strait-line approach? If yes then for how long as theoretically it would never be zero. Could the accounting approach be 3 years but for the CCA I could claim the expenses for e.g. 5 years?
What CCA would be in the last year? Is it again 1/2 year rule?
Thanks
You will have to stop when it reaches zero value for tax purpose.
You will have to stop when it reaches zero value for tax purpose.
You would not normally use a straight line depreciation for this type of equipment. Using the 55% depreciation is likely to end in close to the same time period as well.
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