When dealing with capital cost allowance (CCA), you may need to report recapture or terminal loss. Here's how to do it in Wealthsimple Tax:
Reporting Recapture:
If you're using Wealthsimple Tax CCA tables:
- Recapture is automatically included
Important: If you're using Wealthsimple Tax CCA tables, remember to remove the class (or change the UCC start to $0) next year.
If you're reporting totals only:
- For rental income: Report this in the CCA subsection in the Recapture (9947) field
- For business, professional, and/or commission income:
- Navigate to the Income & Expenses subsection
- Answer "Yes" to the question "Do you have any other business income?"
- Include the recapture in the Other income (8230) field that appears
- For farming and/or fishing income: Report this in the Income & Expenses subsection in the Other income (9600) field
Reporting Terminal Loss:
You'll need to manually report your terminal loss:
- For rental income: Report this in the CCA subsection in the Terminal loss (9948) field
- For business, professional, and/or commission income: Include it in the Income & Expenses subsection using the Other expenses (9270) field
- For farming and/or fishing income: Include it in the Income & Expenses subsection using the Other expenses (9790) field
Remember:
- Keep all relevant documents and calculations for your records
- Recapture and terminal loss can significantly impact your taxable income
If you're unsure about how to report recapture or terminal loss, consider consulting with a tax expert.
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