Which of the following cases is not eligible for capital cost allowance in the current year?
A)A new engine is installed in a semi-trailer that is used to haul produce to Mexico.
B)An employee owns and uses an automobile in the course of their employment duties during the month of December.Their pay for December is not received until January of the following year.
C)A piece of equipment was purchased during the year on a 5 year financing term.
D)A building under construction is scheduled for completion in eighteen months.The building will be used as a production facility.

Question

Quizplus · Accepted Answer

Capital cost allowance (CCA) is a form of depreciation that is deductible for income tax purposes, allowing a taxpayer to recover the cost of an asset over a period of time. For an asset to be eligible for CCA in the current year, it must be available for use. A building that is still under construction and not yet available for use does not qualify for CCA in the current year.

Which of the Following Cases Is Not Eligible for Capital