Business English Lesson – Advanced Level''''s archiveCapital Cost Allowance pdf

Business English Lesson – Advanced Level's archive Capital Cost Allowance 1.. explains that although most expenses are deductible in the year you paid them, there are types of purchases

Business English Lesson – Advanced Level's archive

Capital Cost Allowance

1 David Trahair, C.A explains that although most

expenses are deductible in the year you paid them, there

are types of purchases that are differently

accounted

bought

measured

treated

2 For example, purchases of property such as computers,

office furniture, buildings, and manufacturing equipment

are not usually written in the year of acquisition

down

in

off

up

3 These types of properties will or become obsolete

over a number of years; in recognizing this, you can make

a yearly deduction for their cost for income tax purposes

called capital cost allowance

turn out

turn over

wear down

wear out

4 All property of a capital nature that you purchase must

be grouped in a class to that item and all property

in that class is grouped together and the total cost is used

to determine the amount of capital cost allowance

especially

special

specific

specified

5 Classes typically use a balance to depreciate

property and each class is designated a maximum fixed

percentage for the year; there are 44 classes of property

with rates in the classes varying from as low as 4% to as

high as 100%

declining

decreasing

receding

reclining

6 If your taxation year is less than twelve months, then

the allowable deduction amount will be to a portion

of the maximum amount allowed

appropriated

apropos

prioritized

prorated

7 Generally, for the year of acquisition the half-rate rule

applies, so only 50% of the maximum deduction amount of

a particular class can be

claimed

listed

made

reserved

8 can occur if, when you sell the property, the sale

price is more than the total of the undepreciated capital

cost (U.C.C.) for that class at the beginning of the period

and there were no more items left in that class

Recapture

Reclamation

Refund

Reimbursement

9 loss will occur if you have an undepreciated

capital cost for a class but have no more physical

property (i.e you could have sold an asset for less than

its U.C.C.)

An intentional

An interim

A temporary

A terminal

10 This amount is deductible from your business income

for the year that you of the property

declared

depreciated

despaired

disposed