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Disposition of 1 item in a CCA class
03-18-2018, 10:54 PM
Post: #1
Disposition of 1 item in a CCA class
I have 2 computers in class 50 per below:

Computer-1: UCC at start of year = $800
Computer-2: UCC at start of year = $200

Computer-2 is damaged and I have junked it. No compensation was received for it (i.e., no insurance claim etc.).

How do I fill T2 Schedule-8 ?

What are the accounting entries ?

Thanks in advance.
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03-19-2018, 10:11 PM
Post: #2
RE: Disposition of 1 item in a CCA class
My question is basically this. If one of the items in a class is damaged and junked what do I do. Claim the loss somewhere (if so how) or pretend that thing is still in operation and do the usual depreciation (this is what I gathered from googling. Only when no items are left in a class you can claim terminal loss). May be I am missing something. Help please...
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03-24-2018, 07:07 PM
Post: #3
RE: Disposition of 1 item in a CCA class
Here is a response from Allan Madan (CPA, CA):

"Since there are still assets remaining in Class 50, the Class cannot be closed and a terminal loss cannot be claimed. Continue to claim CCA as normal on Class 50 assets, even though you got rid of one computer for $0 proceeds.

For accounting purposes, record a capital loss for the disposal of the asset and remove the asset from the books. The capital loss = to the book value of the computer disposed of."
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