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T2 half-year rule not applying

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Hello, 

I cannot get the half-year rule to apply to my capital cost allowance forms. I enter the date of acquisition, which falls within my corporations first year, and the half-year rule isn't applied (although it says it will apply automatically to first year corporations). I have tried check marking the "Yes" box beside "Half-year CCA applies on additions", and still the half-year rule is not applying. For reference, I am trying to set up Class 1 and Class 8 assets. Any suggestions? 

Thanks

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Hello Ivy,

Business CCA half-year rule

The program will apply the half-year rule in the year you acquire depreciable assets or additions to the property.

For more information, consult the following links:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/cptl/menu-eng.html
http://www.cra-arc.gc.ca/E/pub/tg/t4002/README.html

To claim an the capital cost allowance, follow these steps:

1 - In the "Left side menu on the Interview tab" select "Self-employment income";
2 - You have completed the "Business identification" pages as well as on the "Income and Expenses" pages  and others as necessary.
3 - Select the sub-section "CCA" and on the screen to the right, choose the category that applies to your situation.

4 - On the new page that appears, record the information on the line "Description and amount of capital additions" and in the field to the right enter the amount. 
5 - If you do not wish to claim the maximum allowable amount, you can limit the CCA by choosing the line "Limit to the CCA or the CECA of this class" and in the field to the right enter the desired amount. 
6 - If you do not want to apply the half-year rule (exceptions), select "No" on line "Application of half-year rule to current year additions"

The cost of acquisition will be reported in column 3 of Area A of Form T2125.

 

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