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News > RESOLVED Known Issue: Incorrect calculation of Québec CO-17 CCA classes 50, 14, 14.1 and 44 for additions between Nov. 20 and Dec. 4, 2018

RESOLVED Known Issue: Incorrect calculation of Québec CO-17 CCA classes 50, 14, 14.1 and 44 for additions between Nov. 20 and Dec. 4, 2018


Québec class 50

Issue: Currently, for Québec class 50, TaxCycle does not correctly calculate the accelerated CCA for capital asset additions made during the period after November 20, 2018 and before December 4, 2018.

For additions made after November 20, 2018 and before December 4, 2018, Québec requires that the federal accelerated CCA rule be applied. This suspends the half-year rule and grosses up the UCC by an amount calculated as 50% of the net addition.

Additions made after December 3, 2018 remain eligible for the Québec accelerated CCA. This suspends the half-year rule and grosses up the UCC by an amount calculated as 9/11 multiplied by the net addition.

Workaround: Override the amount in the Québec column on the S8Asset worksheet based on the amounts calculated in the Federal column.

Québec classes 14, 14.1 and 44

Issue: Currently, for Québec classes 14, 14.1 and 44, TaxCycle does not calculate the accelerated CCA for capital asset additions made during the period after November 20, 2018 and before December 4, 2018. For asset additions made after December 3, 2018, TaxCycle calculates the accelerated CCA according to the special Québec rules.

For additions to these classes made after December 3, 2018, Québec requires that the federal accelerated CCA rule be applied.

For additions made after December 3, 2018, the federal accelerated CCA rule generally continues to apply. However, if a capital asset addition is considered Qualified Intellectual Property, special Québec rules apply, resulting in deductions equal to the cost of additions (making the asset fully deductible).

Workaround:

  • For additions made after November 20, 2018 and before December 4, 2018, override the amount in the Québec column on the S8Asset worksheet based on the amounts calculated in the Federal column.
  • For additions made after December 3, 2018 that are not Qualified Intellectual Property, override the amount in the Québec column on the S8Asset worksheet based on the amounts calculated in the Federal column.
  • For additions after December 3, 2018 that are Qualified Intellectual Property, no correction is needed.

Resolution

This issue was resolved in version 8.1.34753.0 of TaxCycle T2.


 

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