• Explain the factors the Canada Revenue Agency may consider when determining the deductibility of an expense incurred in the pursuit of a business profit, such as:
  • Reasonability of expense
  • Incurred to earn business income
• Identify expenses for which a self-employed individual may claim a deduction.¹
• Explain eligibility requirements for a deduction that may be claimed by a self-employed individual.
• Estimate the income tax impact of claiming a deduction by a self-employed individual.

Capital Cost Allowance (CCA)

• Identify opportunities when capital cost allowance may be claimed.
• Define terms associated with capital cost allowance², such as:
  • Capital cost
  • Depreciable property
  • Fair market value (FMV)
  • Proceeds of distribution
  • Undepreciated capital cost (UCC)
• Compare current and capital costs using the criteria as established by the Canada Revenue Agency.³
• Identify classes of depreciable property.⁴
• Estimate undepreciated cost of capital.
• Estimate capital cost allowance.
  • For the first year of ownership of an asset.⁵
  • For each year subsequent to the first year of ownership of the asset.⁵
• Define a terminal loss.
• Explain a terminal loss.⁶
• Estimate a terminal loss.
• Define a recapture of depreciation.
• Explain a recapture of depreciation.⁷
• Estimate a recapture of depreciation.
• Explain potential risks to an individual associated with claiming capital cost allowance deductions for a personal residence.
• Estimate the income tax impact resulting from the disposition of depreciable capital property.