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Class 13 CCA

Updated: 2025-06-04

Learn how to create a class 13 leasehold interest. Although this topic focuses on how to do this in TaxCycle T2, these steps also apply to the T1, T3 and T5013 modules.

1. Leasehold addition to a new class 13

Example

Tax year: January 1, 2025, to December 31, 2025
Leasehold improvement term: July 1, 2025, to June 30, 2030 (5-year term)
Leasehold improvement amount: $100,000

  1. Create a new class 13. On the S8Asset, select 13-a from the class dropdown menu.
  2. Enter the date the leasehold improvement was acquired and the date it expires.
  3. TaxCycle automatically calculates the # of periods in years.
  4. In the Current Year Addition/Disposition Transactions section, enter a description, the transaction date, and the cost of addition of the leasehold improvement.
  5. The transaction date must match the date acquired so that the annual CCA can be calculated. 

Screen Capture: Leasehold addition to a new class 13

2. Adding a new leasehold improvement to an existing class 13

Example

Tax year: January 1, 2025, to December 31, 2025
Existing leasehold improvement term: July 1, 2023, to June 30, 2028 (5-year term)
Original leasehold amount: $100,000
Annual CCA: $20,000 ($100,000 / 5-year lease term)
Opening UCC = $50,000

New leasehold is added to the existing lease agreement on July 1, 2025, with the same lease end date of June 30, 2028.
New leasehold improvement amount = $120,000

In this case, you must create two instances of class 13-a (one for the existing leasehold improvement and another for the addition of a new leasehold improvement to the same property).

  1. Create a new class 13-a on the S8Asset.
  2. Enter the leasehold improvement term (the date acquired and date of expiry).
  3. Enter the number of years in the lease (# of periods). 
  4. Enter the Annual CCA ($100,000 / 5 years).
  5. Enter the opening UCC. Screen Capture: New leasehold improvement
  6. Create another instance of class 13-a to record a leasehold improvement addition to the same property.
  7. Enter the leasehold improvement term. TaxCycle automatically calculates the number of periods in years.
  8. Enter a description, the transaction date and the cost of addition (leasehold amount).
  9. The transaction date must match the date acquired so that the annual CCA can be calculated. Screen Capture: Second leasehold improvement