AFM362 Study Guide - Midterm Guide: Property Income, Personal Services
16 Dec 2018
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No recapture or terminal loss , but subject to a half-year rule for the amount of allowable cca in the year of disposition. Class 12 small tools: half-year rule does not apply for small tools, linens, and uniforms. Class 13 leasehold improvements: cca is sl, at the lesser of: (i) (ii) 1/5 of the capital cost of the leasehold interest; or. The capital cost divided by years of lease plus the first renewal term. The divisor is not to exceed a total of 40. Class 14 limited-life intangibles: patents, franchises, concessions, or licenses. Cca is calculated with straight -line depreciation over the remaining legal life of the asset. The half-year rule does not apply, prorated based on days instead. Class 52 computer equipment: half-year rule does not apply. Cca on rental p roperties: each rental property cost ing ,000 or more must be placed in a separate cca class, to force recognition of recapture upon sale.
