When looking at CCA info, I have the following under class 8: UCC start of year: $0 Cost: $1045.25 Base Amount: $1567.87 CCA For Year: $313.57 How does this make sense?

[sean-nesbitt9]

From my understanding, the CCA rate is 20% which would be $209.05 without accounting for the half year rule. I don't see how TurboTax came up with $313.57. Hopefully I'm missing something.

[ayseleren18]

Thank you for your question, 

The calculation of $313.57 is due to the Accelerated Investment Incentive (AII) being applied to your Class 8 addition. 

With the Accelerated Investment Incentive, the existing Capital Cost Allowance (CCA) half-year rule is suspended. Here is how the software arrived at that calculation.

There is no Undepreciated Capital Cost (UCC) balance in Class 8. You added a new investment to Class 8 of $1,045.25.

You then add 1/2 of the net addition to your first cost to reach the CCA base of $1,567.87 ($1,045.25 + $522.62 = $1567.87) 

Class 8 CCA rate is 20%, so when you multiply 1567.87 with 20%, you will get the number $313.57.

More information on the Accelerated Investment Incentive can be found in these links:

CRA - Accelerated Investment Incentive

TurboTax - Accelerated Investment Incentive