2016-12-20 00:00:00TaxesEnglishLearn how to utilize the CCA over time to minimize the taxes your business has to pay in a particular year.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Accountants-Debate-How-Much-Capital-Cost-Allowance-To-Calculate-Into-This-Years-Tax-Deductions.jpghttps://quickbooks.intuit.com/ca/resources/taxes/making-the-most-of-your-cca-deduction/Making the Most of Your CCA Deduction

Making the Most of Your CCA Deduction

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The Canada Revenue Agency allows your business to take a yearly deduction for assets that depreciate over time; this deduction is known as the capital cost allowance. The assets eligible for the deduction include buildings, equipment and furniture that are purchased. Instead of taking the full expense in the year your purchase the item, it is done over time as the item wears out or becomes obsolete.

You do not have to claim the full amount of the CCA in a particular year. Claim as much or as little of the CCA, and carry forward the unused portion. If your business has little or no taxable income in a year, forgo much or all of your CCA deduction until you have enough income for the CCA to offset.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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