Hi,
how to calculate the annual CCA for leasehold improvements under Class 13-a?:
Secondly, is the number of periods months or years between the above two dates?
I was under the impression that TaxCycle auto calculates this, Profile does though?
For leaseholds the CCA is on SLM (straight line method), and periods means the term of the lease.
@w.ajmal Based on the screenshot, I am assuming that this is an existing leasehold improvement. In that case, dates acquired and date expires are the leasehold improvement terms. And enter the number of periods in years (ie. how many 12 months periods).
So, for example, in your case, the periods would be 11 years. For the annual CCA fields, enter the original leasehold amount divided by the # of periods (ie. $100,000 / 11 years = $9,091).
If you are adding a new addition to an existing lease (ie. same property), create another instance of class 13-a (as opposed to class 13-b), enter the leasehold improvement dates for the term. Then, in the addition section, enter the addition amount and make sure that the transaction (addition) date is same as the date in “date acquired” field, # of periods and annual CCA will automatically calculate. So, in the above example, if a leasehold improvement addition is made to the same property, we can assume that the end date of the new leasehold terms will be the same as the existing leasehold. Simply create another instance of class 13-a, enter leasehold terms, an addition with a transaction date.
