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

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