# CCA Loss Deepening in a Loss Making Entity

**URL:** <https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953>\
**Category:** T2\
**Created:** [June 16, 2025, 7:20am UTC](https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953 "2025-06-16T07:20:45Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![w.ajmal](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@w.ajmal](https://www.protaxcommunity.com/u/w.ajmal)\
**Post date:** [June 16, 2025, 7:20am UTC](https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953/1 "2025-06-16T07:20:45Z")

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As per my understanding, you cannot use CCA to deepen the loss in T2. I would be interested if TaxCycle could auto adjust the return to only claim CCA to the limit of the income. At the moment, it appears it deepens the loss.

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**Author:** ![jimt](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/jimt/32/2531_2.png) [@jimt](https://www.protaxcommunity.com/u/jimt)\
**Post date:** [June 16, 2025, 12:32pm UTC](https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953/2 "2025-06-16T12:32:31Z")

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> [@w.ajmal](#):
>
> you cannot use CCA to deepen the loss in T2.

That is not correct.

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**Author:** ![jhd.hemeon](https://avatars.discourse-cdn.com/v4/letter/j/3ec8ea/32.png) [@jhd.hemeon](https://www.protaxcommunity.com/u/jhd.hemeon)\
**Post date:** [June 16, 2025, 1:03pm UTC](https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953/3 "2025-06-16T13:03:25Z")

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The CCA limit is for individuals, not corporations. TaxCycle has it right. And, for a T1, it’s the aggregate rental income/loss in the case of multiple properties.

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<div class="post-metadata">

**Author:** ![iain.fyffe](https://avatars.discourse-cdn.com/v4/letter/i/e5b9ba/32.png) [@iain.fyffe](https://www.protaxcommunity.com/u/iain.fyffe)\
**Post date:** [June 16, 2025, 3:17pm UTC](https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953/4 "2025-06-16T15:17:44Z")

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Corporations are also restricted from increasing a rental loss with CCA if it is not their primary business.

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**Author:** ![Steven](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/steven/32/790_2.png) [@Steven](https://www.protaxcommunity.com/u/Steven)\
**Post date:** [June 16, 2025, 6:28pm UTC](https://www.protaxcommunity.com/t/cca-loss-deepening-in-a-loss-making-entity/10953/5 "2025-06-16T18:28:56Z")

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@w.ajmal

As others have pointed out, in general, CCA claim can create or increase a loss for a corporation. However, this would not be allowed is if the capital asset is related to a rental property in which rental income is considered passive income. If this is the case, you would fill out a rental worksheet and “link” the capital asset to the rental property.

 ![image](https://us1.discourse-cdn.com/flex016/uploads/taxcycle/original/2X/c/cf58db9537c18f9581a8114956adcf0201545d52.png)

Now, to claim just enough CCA to offset taxable income, there are 2 ways to achieve this.

1. You can select 1(a) in the Optimization Worksheet.  

2. In S8, you can customize the amount of CCA claim by entering a desired amount here.  

Steven