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.

1 additional answer

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: