Closing out CCA

[LRushford13]

Hi,

I am trying to close out a business that still has CCA in class 8 and 10, however these items won't be sold (not worth it) and they will be using them for personal use. How do I report this when I am doing their final year in business ?

[daisy08]

According to Canada Revenue Agency, When there is a change in use of a property you have, you may be considered to have sold all or part of your property even though you did not actually sell it.

You will have a deemed disposition at Fair Market Value (FMV) at the time of change in use of the asset, as a sale back to yourself. 

The software will calculate a Recapture - Proceeds (FMV) greater than the Undepreciated Capital Cost (UCC), which will be added back to business / property income. Or a Terminal Loss - Proceeds less than the Undepreciated Capital Cost (UCC), which is substracted from the business/ property income. 

Thank You for chossing TurboTax.