Capital Cost Allowance Misclassification
by Richard
(London ON)
I am presently doing my limited company tax (T2) filing.
In last year's filing, I messed up & included a UCC amount for computer/software (class 50/52) under class 10 (Auto).
How can I correct this to move it back to class 50/52 in this years filing? Do I need to refile last year's return with the CRA?
Many thanks
Hi Richard,
Yes, you will have to amend your prior year tax return to correct the error.
I just want to point out that class 50 and 52 have different CCA rates ... they are not same. Take a moment to ensure you have chosen the correct CCA class.
Also, to avoid an error like this in the future, you should always reconcile your CCA schedule to your financial statement depreciation working paper.