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New Member
posted Oct 29, 2019 6:35:02 PM

T2125 CCA Terminal Loss

I disposed of a broken item of self employed business capital equipment, that still shows a UCC value in Area A of the T2125 CCA calculation.  I plan to claim the Terminal Loss (equal to the remaining UCC value) on line 9270 “other expenses” this year, as per CRA guidance.  So how do I clear the UCC amount?  When it carries forward to next year in Turbotax do I overwrite it by typing in zero (or by leaving that CCA class blank because the item is disposed of and there is no value)?  Alternately, is there something I need to do this year to zero the UCC amount in that CCA class?

0 8 6592
1 Best answer
New Member
Oct 29, 2019 6:35:03 PM

These are the instructions for a terminal loss per TurboTax:

If you had a terminal loss, follow these steps.

  1. At the end of the Capital Cost Allowance screens, look in the UCC Balances section.
  2. Find the line for the class you disposed of.
  3. Enter the terminal loss in the CCA For Year field. Pat sold all of his class 3 property for $900.00 in 2014. However, at the start of the year, he had an undeducted capital cost for the class of $2,400.00. He has no class 3 property at the end of the year.

    On the final CCA summary screen, the CCA For Year calculated amount for class 3 shows $75.00. Pat replaces that with $1500.00 (his UCC of 2,400 minus proceeds of 900).


8 Replies
New Member
Oct 29, 2019 6:35:03 PM

These are the instructions for a terminal loss per TurboTax:

If you had a terminal loss, follow these steps.

  1. At the end of the Capital Cost Allowance screens, look in the UCC Balances section.
  2. Find the line for the class you disposed of.
  3. Enter the terminal loss in the CCA For Year field. Pat sold all of his class 3 property for $900.00 in 2014. However, at the start of the year, he had an undeducted capital cost for the class of $2,400.00. He has no class 3 property at the end of the year.

    On the final CCA summary screen, the CCA For Year calculated amount for class 3 shows $75.00. Pat replaces that with $1500.00 (his UCC of 2,400 minus proceeds of 900).


New Member
Oct 29, 2019 6:35:04 PM

Excellent answer.  This clearly claims the amount and zeroes the UCC balance in the empty CCA class.  CRA's guidance to enter an amount in line 9270 overcomplicates the process and fails to zero the UCC balance as is necessary.  I will follow Delphision's Turbotax advice.  Thanks!

New Member
Oct 29, 2019 6:35:06 PM

Problem with this step is it is not splitting it 50% with my partner still

New Member
Oct 29, 2019 6:35:08 PM

It may not make a perfect 50% split if one partner drove more or had vehicle different expenses than the other.

New Member
Feb 10, 2020 4:54:45 PM

Hello: Maybe I'm doing something wrong, but I cannot make these instructions work in Turbotax 2019 because I cannot overwrite the pre-calculated CCA claim for the year. Can we try one more time?

Assume I have a class 50 asset with an opening UCC of $1,000. This was the final year of my business and I want to zero out the UCC at the end of the year. Proceeds of disposition were $750. Therefore I have a terminal loss of $250. How do I reflect this in Turbotax 2019 and force the UCC at year end to be $0? Thank you!

Level 13
Feb 14, 2020 8:50:09 AM

@underpar999Dephision’s answer is correct. If after following his instructions you are still having the same issue, please contact our support team to assist, as they have the option to view your screen to troubleshoot why you are not managing to get $0 UCC at the end of the fiscal.

 

Because everyone’s circumstance is different, they may need to view what you brought over from last year (if anything) which may be causing you not to be able to get the numbers correctly entered.

 

Good Luck!

New Member
Feb 15, 2020 7:25:52 AM

Hello TurboTaxLise: Thanks for the reply. The issue I have is "Enter the terminal loss in the CCA For Year field."

My UCC balances are "blue" and double clicking won't allow me to override the calculated value. I just get the pop-up warning box with no ability to enter a new amount. In the example screenshot below, I was trying to change the $499.51 amount.

Appreciate your help...thanks.

 

 

New Member
Feb 16, 2020 5:37:46 AM

I forgot that to override CCA, you have to highlight the field then press F2.

Problem solved!