I recently encountered an issue on a 2020 T2 that our office filed. The client had disposed of all of the assets on their Schedule 8 for proceeds of nil, and therefore was claiming a terminal loss equal to the opening UCC for the year, $7,766.
Tax Cycle still somehow calculated an amount for optimized CCA of $159, and claimed the deduction on Schedule 1 in error. I’ve attached a screenshot of the CCA schedule. I can’t even figure out where the CCA amount of $159 would come from, since that doesn’t equal the CCA claim on any of the assets on the schedule. I double checked my optimizations screen and there are no overrides on that screen.
In the latest release, I recreated S8 based on your screenshot. I am not able to recreate the issue.
I basically created the 3 classes and in each class I answered Yes to the terminal loss question in the addition/disposition area with nil proceeds.
Is it possible for you to send us the file or at least a recreated file? Send us an email to info@TaxCycle.com with the subject “S8CCA issue: Attention Steven Yu - please send e-courier email”. Then, I will send you an e-courier email so you reply and add the file securely via e-courier.
@brian1 I was able to re-create the issue but with different CCA amount ($318). I would still appreciate the file so we can fix it and validate our fix.
Got your email and we sent you an e-courier email. Please reply to the e-courier email with the file attached.
This bug shows up only for Class 14.1 that was an eligible capital expenditure (@7%) when there is a terminal loss with nil proceeds. We will have this corrected in the upcoming release planned either this week or early next week. Thank you for your patience on this.