Understanding CCA, UCC, Recapture, and Terminal Loss for Tax

This video will help you understand how to account for CCA (Capital Cost Allowance). UCC ( Undepreciated Capital Cost), Recapture, and Terminal Loss for tax purposes.

The following is what will be discussed in the video:
0:00 Intro
0:18 Overview
0:58 Definitions
1:25 CCA Requirments
1:58 CCA Template
3:34 Additional CCA Rules
4:47 CCA Example
5:56 Dispositions
6:33 Recapture Example
7:40 Terminal Loss Example
8:30 Most Common CCA Rates Used + Summary Sheet
9:11 Exam Reference Material Provided
9:20 Thanks!

#CPA #CFE #CPACANADA #PassingCFE #ShumzCPA

[ShumzCPA]

Does everyone agree that there's only death and taxes that you can't avoid in life? 😅

[ShumzCPA]

For Slide 10, the correct UCC closing balance is $11, 900 ($20, 000 Openings Balance + $4, 000 Net additions - $12, 100 CCA).

[brianwong]

Thank you so much!! You're a great CPA resource!

[kebon]

Thank you for the pasta boiling terminology, simple and easy tip to remember 🙏🙏🙏

[denisefyi]

This is great but isn't the 1/2 yr rule an old treatment? And there is ACCII now?

[jeane]

Thank you very much! Super helpful video! :)

[shiulibawa]

QUESTION:
What is UCC for my vehicle if I bought it just last year? How do I calculate it for the 1st year?

[Zi_gemi]

I am an accounting student, I have bought a textbook, but there a lot of cases with solutions available only to my instructor. Where can I purchase a practice kit with solutions?

[ebertl]

Page 9, closing UCC balance, shouldn't it be $11, 900 ($2000 opening balance + $4000 net addition - $12100 CCA)?

[jbmop]

What if you use a vehicle for personal use as well? Assuming you claim only CCA for the proportion used for business, how does the affect the UCC and disposition?

[HG-scqn]

is CCA only in Canada? I've seen DCFs that value US companies don't have CCA schedule in their DCF. Thanks

[jievw]

How about the Accelerated Investment Incentive?

[alicesong]

Awesome video!! Definitely helped me out a lot. Thanks! Just one question; we subject additions of assets to the 50% rule if its the first year we bought them, but how do we know which asset that we dispose of is subject to the 50% rule?

[umerali]

does this get tested alot on Day 3 for tax?

[Zi_gemi]

Since CRA loves money 😂 All tax authorities love money