Describe the type of items that are included in CCA Class 14.1 and give two examples.

Question

Quizplus · Accepted Answer

The Answer is Class 14.1 was established to replace, as of January 1, 2017, a balance that was referred to as Cumulative Eligible Capital. In general terms, it contains:
• goodwill;
• balances that were in Cumulative Eligible Capital prior to January 1, 2017; and
• property that is acquired after December 31, 2016 that would have been eligible capital property under the old definitions (the Income Tax Act defines this item differently but this is, in effect, the meaning of the definition). This last item is largely intangible capital assets that have an unlimited life. Examples would include purchased customer lists, the cost of licenses with unlimited lives, expenses of incorporation over $3,000 and the cost of certain government rights.

Describe the Type of Items That Are Included in CCA