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T2042 Asset Manager - Class 14.1

I have noticed that for Class 14.1 assets the answer to the question “Goodwill or property that was Eligible Capital Property before January 1, 2017?” does not carry forward from 2017.

I have several proprietorship and partnership farm clients with existing farm quotas that transferred into class 14.1 at the beginning of 2017. A checkmark was put in the box to indicate it was ECP acquired before 2017, thus eligible for 7% CCA.

For the 2018 tax year, the checkmark is absent, essentially indicating all of these class 14.1 assets have reverted back to No, and now have a 5% CCA rate.

I was wondering if it might be possible for the answer to this question to carry forward in future years. Off the top of my head, I can’t envision a situation where the answer would be “yes” in 2017 yet change to “no” in 2018. Any new additions to class 14.1 that do not qualify for the 7% CCA would need to go in a separate class (14.1b 14.1c etc) anyway.

I don’t have any clients with Goodwill or intangible assets on a T2125 but I expect the same issue could be true for the Business Statement as well.

I too noticed that, although in my case the quota was all sold so it didn’t have any effect.