Wealthsimple Tax supports Québec-specific CCA tables, including accelerated CCA for certain property classes. Follow these steps to claim CCA in Québec:
- Complete the Additions and dispositions table:
- Report acquisitions and dispositions during the tax year
- Note the property type
- Determine property classification:
- For property acquired after November 20, 2018:
- Check if it's an Accelerated Investment Incentive Property (AIIP)
- For property acquired after December 3, 2018:
- Determine if it's Québec Intellectual Property (QIP)
- Check if it qualifies for the additional 30% deduction
- For property acquired on or before November 20, 2018:
- It won't be AIIP, QIP, or qualify for an additional deduction
- For property acquired after November 20, 2018:
- Select the appropriate class in Wealthsimple Tax:
- For QIP: Choose the "QIP" class (e.g., 44 QIP)
- For Additional Deduction: Select the "+30%" class (e.g., 50 +30%)
- For Class 50 not used primarily in Québec: Choose "50 NQ"
- For QIP: Choose the "QIP" class (e.g., 44 QIP)
- Determine property classification:
- Complete Québec CCA Calculation:
- Enter opening Undepreciated Capital Cost (UCC) for each class
- Use closing UCC from the prior year
- For most users, Québec opening UCC should match the federal opening UCC
Important notes:
- QIP and property eligible for Additional Deduction start new classes in Québec
- Federal tables won't mark a property as "QIP" or "+30%"
- Special rules apply for Class 50 property acquired between November 20 and December 3, 2018
Definitions:
Accelerated Investment Incentive Property (AIIP) is property acquired after November 20, 2018, that is available for use before 2024. It does not qualify if:
- you or a non-arm’s-length person previously owned the property, or
- the property was transferred to you on a tax-deferred “rollover” basis.
Québec Intellectual Property (QIP) is property acquired after December 3, 2018, which is a patent or right to use patented information, a license, a license, know-how, a trade secret or other similar property that constitutes a body of knowledge, and in particular:
- is a property included in class 14, 14.1 or 44,
- begins to be used within a reasonable period following its acquisition or when its development is completed,
- is used, during the period covering the implementation process of the innovation or invention, only in Quebec and primarily in the course of carrying on a business, and
- is not property of a person or partnership that does not deal at arm’s length with the purchaser.
Property qualifies for the Additional Deduction if it meets the following conditions:
- it is new at the time of acquisition and is not acquired from a person or partnership that does not deal at arm’s length with the purchaser;
- it is used within a reasonable time following its acquisition;
- it is used primarily in Québec, in the course of carrying on a business, throughout a period minimum of 730 consecutive days following the beginning of its use, except in case of loss or involuntary destruction of the property.
NQ is property acquired after December 3, 2018, that is classified as a class 50 asset and is NOT used primarily in Québec. It must also meet the following conditions:
- it is new at the time of acquisition and is not acquired from a person or partnership that does not deal at arm’s length with the purchaser;
- it is used within a reasonable time following its acquisition.
If you need assistance claiming CCA in Québec using Wealthsimple Tax, please contact Wealthsimple support. For complex situations or specific property classifications, consider contacting Revenu Québec directly.
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