RSM324H1 Chapter 6: CHAPTER 6-2
15 Feb 2017
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Chapter 6 the acquisition, use, and disposal of depreciable property. Rule does not apply to items in class 14 or to certain specific items in class 12 (e. g. , small tools, kitchen utensils, and linens) The amount of cca that can be claimed may be further limited when the taxpayer has a taxation year that is less than 365 days. In such cases, the cca that would otherwise apply (including the amount resulting from the application of the rule) is prorated by the number of days in the taxation year divided by. 365 [both rule and prorate apply: consequently, this method of allocation results in greater tax deductions in the earlier (cid:455)ears of a(cid:374) asset"s life, (cid:449)hi(cid:272)h, i(cid:374) tur(cid:374), (cid:272)reates higher after-tax cash flow. Polling assets of the same class: the cca system places all assets of the same class in a common pool, provided that those assets are all used in the same business.
