Does anyone know why ProFile calculates an amount in Column 13 (formerly half-year rule) on Schedule 8 for Class 12 half-year exempt additions?
I recently prepared a T2 Corporate Tax Return, where the client had Class 12 additions for Small Tools (Under $500), which are exempt from the half-year rule.
I entered the additions on S8Class in the box labelled Half-year exempt additions.
I see that ProFile is calculating an amount in Column 13 on S8 equal to 50% of the half-year exempt additions.
I also see that ProFile isn't subtracting the amount in Column 13 on S8 to calculate the CCA in Column 17.
This results in a 100% CCA claim for the Class 12 Small Tools, which is correct.
I received the Corp NOA, which showed that the CRA had reduced the CCA for the Class 12 Small Tools by the amount in Column 13.
I am trying to figure out why this occurred.