Hello,
Don’t know what is wrong here… enter new assets in the T776Asset screen, applied the half year rule, then when it apply the CCA rate, it not taking the correct rate?? What going on?
Eg. For class 8 asset, CCA rate 20%.
Cost of addition: 198.83, half year rule: 99.41… when it take the CCA, only claim 7.57?? Why?
20% should be 19.88…
Probably cutting off the CCA once net rental income is nil?
forgot to mention, there is still a rental gain after taking full CCA.
The $198.83 is even less than CRA’s outdated threshold of a capital property v an expense. I’d expense it and not worry about the problem.
Part year rental?
Yes, I see that now… thanks Arliss… however, does it need to be prorated? Is that the rules?
Yes, but the amount is very small. I might side with Kevin. What Class 8 asset would cost that little for a rental?
materiality…
“the quality of being relevant or significant”
I thought you had invented a new word, but you are just learnin me things.