RSM324H1 Chapter Notes - Chapter 6: Application Software, Computer Hardware
Document Summary
Chapter 6 the acquisition, use, and disposal of depreciable property. This 24-month replacement applies to all classes of depreciable property. The loss of equipment in a forced disposition with proceeds equal to the amount received from the insurance company: voluntary dispositions get the same opportunity but are provided only a 12-month extension. This extension applies only to property that is either a building or a leasehold interest in a building that is used for the purpose of earning business income. The recapture of cca is included in income in the year of disposition but is subsequently eliminated by filing an amended tax return in the year of replacement. Recognition of cca recapture in the disposal year. An amended tax return to revise previous transaction when replacement. Ucc of the replacement in the year of acquisition. 300,000: the technical process for a disposition and replacement is summarized as follows: