# Bifor Ltd. — 2024 Class 8 CCA Calculation ## Given - **Tax year end:** December 31, 2024 - **Class 8 UCC (Jan 1, 2024):** $475,000 **Class 8 addition in 2024 (eligible for Accelerated Investment Incentive - AccII):** $150,000 - **Class 8 disposition in 2024:** $72,000 proceeds (less than capital cost) --- ## Step 1: Calculate Proceeds for Disposition - Proceeds of disposition: $72,000 - Less than original capital cost ⇒ No recapture or terminal loss occurs; regular disposition rules apply. --- ## Step 2: Calculate UCC Before CCA ### Opening UCC (Jan 1, 2024) - $475,000 ### Add: New Class 8 Addition - $150,000 ### Subtotal - $475,000 + $150,000 = $625,000 ### Subtract: Proceeds of Disposition (up to original cost) - $625,000 - $72,000 = $553,000 --- ## Step 3: Apply the Half-Year Rule - **Half-Year Rule:** For additions, only 50% is eligible for CCA in the year of acquisition, unless eligible for AccII. ### AccII Treatment - For eligible property acquired after Nov 20, 2018, and available for use, **CCA is calculated on 1.5 times the normal half-year rule amount in the first year.** - Formula for first-year CCA base for the addition: $150,000 \times 1.5 \times 50\% = $112,500$ --- ## Step 4: Calculate CCA for 2024 ### Breakdown - **UCC available for CCA (excluding new addition):** - Opening UCC: $475,000 - Less disposition: $72,000 - = $403,000 - **Regular CCA base:** $403,000 (full), $150,000 (addition) - For the addition, only $112,500 is eligible for CCA in 2024 under AccII. ### CCA Calculation - **Normal CCA rate for Class 8:** 20% - **CCA on original UCC (after disposition):** $403,000 \times 20\% = $80,600 - **CCA on eligible addition (AccII):** $112,500 \times 20\% = $22,500 - **Total 2024 CCA:** $80,600 + $22,500 = \boxed{\$103,100}$ --- ## Step 5: Calculate UCC as of January 1, 2025 - **Start with UCC at Dec 31, 2024 (before CCA):** $553,000 - **Less: 2024 CCA claimed:** $103,100 - **Closing UCC (Jan 1, 2025):** $553,000 - $103,100 = \boxed{\$449,900}$ --- ## Summary Table | Component | Amount | |-------------------------------------|-------------| | Opening UCC (Jan 1, 2024) | $475,000 | | Plus: Additions (Class 8, AccII) | $150,000 | | Less: Dispositions | ($72,000) | | UCC before CCA | $553,000 | | CCA on old UCC ($403,000 × 20%) | $80,600 | | CCA on new addition (AccII, $112,500 × 20%) | $22,500 | | **Total 2024 CCA** | **$103,100**| | UCC at Jan 1, 2025 | $449,900 | --- ## Final Summary - **Maximum Class 8 CCA claimable for 2024:** **$103,100** - **Class 8 UCC balance as of January 1, 2025:** **$449,900**

# Bifor Ltd. — 2024 Class 8 CCA Calculation ## Given - **Tax year end:** December 31, 2024 - **Class 8 UCC (Jan 1, 2024):** $475,000 - **Class 8 addition in 2024 (eligible for Accelerated Investment Incentive - AccII):** $150,000 - **Class 8 disposition in 2024:** $72,000 proceeds (less than capital cost) --- ## Step 1: Calculate Proceeds for Disposition - **Proceeds of disposition:** $72,000 - No recapture or terminal loss occurs as it is less than the original capital cost. --- ## Step 2: Calculate UCC Before CCA ### Opening UCC (Jan 1, 2024) - **Opening UCC:** $475,000 ### Add: New Class 8 Addition - **New Addition:** $150,000 ### Subtotal - \( 475,000 + 150,000 = 625,000 \) ### Subtract: Proceeds of Disposition - \( 625,000 - 72,000 = 553,000 \) --- ## Step 3: Apply the Half-Year Rule - **Half-Year Rule:** Only 50% is eligible for CCA in the year of acquisition. ### AccII Treatment - For eligible property, CCA is calculated on 1.5 times the normal half-year rule amount. - **First-year CCA base for addition:** \[ 150,000 \times 1.5 \times 50\% = 112,500 \] --- ## Step 4: Calculate CCA for 2024 ### Breakdown - **UCC available for CCA (excluding new addition):** - Opening UCC: $475,000 - Less disposition: $72,000 - **Remaining UCC:** \( 403,000 \) - **Normal CCA base:** - Original UCC (after disposition): $403,000 - Eligible addition: $112,500 ### CCA Calculation - **Normal CCA rate for Class 8:** 20% - **CCA on original UCC:** \[ 403,000 \times 20\% = 80,600 \] - **CCA on eligible addition (AccII):** \[ 112,500 \times 20\% = 22,500 \] - **Total 2024 CCA:** \[ 80,600 + 22,500 = 103,100 \] --- ## Step 5: Calculate UCC as of January 1, 2025 - **Start with UCC at Dec 31, 2024 (before CCA):** $553,000 - **Less: 2024 CCA claimed:** $103,100 ### Closing UCC (Jan 1, 2025): \[ 553,000 - 103,100 = 449,900 \] --- ## Summary Table | Component | Amount | |-------------------------------------|-------------| | Opening UCC (Jan 1, 2024) | $475,000 | | Plus: Additions (Class 8, AccII) | $150,000 | | Less: Dispositions | ($72,000) | | UCC before CCA | $553,000 | | CCA on old UCC ($403,000 × 20%) | $80,600 | | CCA on new addition (AccII, $112,500 × 20%) | $22,500 | | **Total 2024 CCA** | **$103,100**| | UCC at Jan 1, 2025 | **$449,900**| --- ## Final Summary - **Maximum Class 8 CCA claimable for 2024:** **$103,100** - **Class 8 UCC balance as of January 1, 2025:** **$449,900**

# Bifor Ltd. — 2024 Class 8 CCA Calculation Summary ## Step 1: Calculate Proceeds for Disposition The proceeds from the Class 8 property disposition amount to $72,000. Since this is less than the original capital cost, no recapture or terminal loss occurs. --- ## Step 2: Calculate UCC Before CCA The opening UCC on January 1, 2024, is $475,000. After adding the new Class 8 property of $150,000 and subtracting the disposition ($72,000), the UCC before CCA is $553,000. --- ## Step 3: Apply the Half-Year Rule For the new addition, only 50% of its cost is eligible for CCA in the year of acquisition. Under the AccII, the first-year CCA base for this addition is calculated as $112,500. --- ## Step 4: Calculate CCA for 2024 The normal CCA on the remaining UCC (after disposition) is $80,600, while the CCA on the new addition is $22,500. Therefore, the total CCA claimable for 2024 is $103,100. --- ## Step 5: Calculate UCC as of January 1, 2025 Starting with a UCC of $553,000 at the end of 2024, subtracting the claimed CCA of $103,100 results in a closing UCC of $449,900. This balance will be carried forward into the next tax year. --- ## Final Summary Bifor Ltd. can claim a maximum Class 8 CCA of $103,100 for the year 2024. The UCC balance as of January 1, 2025, is $449,900.