Capital expense (half-year rule)

[PeteH]

Hello,

I'm trying to add some capital expenses into my CCA base, I'm aware of the half-year rule for the first year a capital asset is added. My question is - when I only take the 50% addition for the first year, do I must add the other 50% the following tax year OR can I apply the other 50% to a future tax year into my CCA base? 

Thanks, 

[Geo123]

Hello PeteH,

The half-year rule applies to the first year only.  Please refer to the CRA guide on the details of how CCA should be entered and calculated :

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/calculate-deduction-capital-cost-allowance.html