Relationship or transaction between people who act in their separate interests. Related people are those, individuals connected by blood, marriage, common-law, partnership, or adoption, are not considered to be dealing with each other at arm’s length.
Relationship or transaction between persons who are related to each other.
An asset generally is considered to become available for use and is eligible for capital cost allowance (CCA):
- At the time the property or equipment, related to business use, is first used to earn income.
- The time when the asset is made available and is capable of producing saleable product or service.
The capital cost of an asset is usually the total of:
- the purchase price (in case of property the land is not depreciable)
- the cost of legal, accounting, engineering, installation and fees that relates to buying or constructing property.
- Cost of any additions or improvement to property after it was purchased.
CAPITAL COST ALLOWANCE (CCA)
The deduction you can claim over a period of several years for the cost of the asset. Assets that wear our or becomes obsolete over time, like, equipment, furniture, building that you use in your business or professional activities.
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