The half-year rule assumes that all net additions are purchased in the middle of the year, and thus only one-half of the stated CCA rate is allowed in the first year.

Question

Quizplus · Accepted Answer

The statement accurately describes the half-year rule for calculating CCA (capital cost allowance) in Canada. It allows for only one-half of the stated CCA rate to be claimed in the first year, assuming that all net additions to an asset were purchased in the middle of the year.

The Half-Year Rule Assumes That All Net Additions Are Purchased