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RedCobra
New Member

How do I record that a CCA item was disposed?

In recent years, I made a total of 4 ADDITIONS to my CCA under Category 8 (office furniture). Threes items I sold this year, so I have entries for each under Dispositions and PROCEEDS amount. A fourth item was a desk that fell apart so I threw it in the dumpster. 

Meaning now I should have no more items under CCA Category 8.

But TurboTax is still showing under UCC Balances: 

Class 8 - UCC Start of Year: $257.99 - Base Amount: $142.99 - CAA For Year: $28.60

From what I gather, this means that next year I will still have a Class 8 amount remaining. But since I no longer have any items remaining, is there a way to get rid of this outstanding amount...? 

Do I just go ahead and DELETE the Class 8 row?

1 Best answer

Accepted Solutions

How do I record that a CCA item was disposed?

Show the disposal at the UCC, undepreciated capital cost (257.99)  There should be a place to show a terminal loss.  You will need to do that for each item.  Be aware that there may be a recapture of amortization, which will show as income since the entire class 8 has been disposed.

Also, if you claimed the GST/HST on any of these items, you may need to include a recapture of GST calculated at fair market value.

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4 Replies

How do I record that a CCA item was disposed?

Show the disposal at the UCC, undepreciated capital cost (257.99)  There should be a place to show a terminal loss.  You will need to do that for each item.  Be aware that there may be a recapture of amortization, which will show as income since the entire class 8 has been disposed.

Also, if you claimed the GST/HST on any of these items, you may need to include a recapture of GST calculated at fair market value.

RedCobra
New Member

How do I record that a CCA item was disposed?

Thanks, with your feedback I ended up finding a section in the TurboTax Help called "Entering a CCA terminal loss". So when there are no properties remaining in the Class, the calculation is [UCC Start of Year] - [Proceeds] = [CAA For Year].

How do I record that a CCA item was disposed?

Will it be same if there is no proceeds only disposal -no value?

How do I record that a CCA item was disposed?

Did you ever figure this out? I'm in a similar situation.