Entering a CCA terminal loss

If you had a terminal loss, follow these steps.

Note:

The rules for recapture and terminal loss do not apply to passenger vehicles in Class 10.1.

Enter your CCA as shown below. An example is provided for you.
  1. At the beginning of the year, Pat had an undeducted capital cost (UCC) of $2,400 for Class 3. At the end of the T2125 Capital Cost Allowance (CCA) screens, Pat clicks Enter UCC Balances From Prior Year.
  2. Pat selects the class number (3: 5%), and the amount of UCC at the beginning of the year ($2,400).
  3. He selects any other class numbers, and their amounts of UCC at the beginning of the year.
  4. Pat clicks Add a New CCA Class to select any other class numbers and their amounts of UCC at the beginning of the year, or he can click Done with CCA.
  5. At the end of the T2125 Capital Cost Allowance (CCA) screens, he looks in the UCC Balances section.
  6. He sold all of his class 3 property for $900.00 in 2023, so he clicks Enter Additions/Dispositions.
  7. He selects the class (3), adds a description of the property, and in the Total Proceeds field, enters $900.00, and clicks Done with CCA.
  8. He has no class 3 property at the end of the year, so he finds the line for the class he disposed of.
  9. On the final T2125 Capital Cost Allowance (CCA) screen, the CCA For Year field shows a calculated amount for class 3 of $75.00. Pat replaces that with $1500.00 (his UCC of 2,400 minus proceeds of 900).
The terminal loss is deducted from income.