Filling out S8Supp and S8 when there is a Section 85 rollover

I cannot figure out how I can enter the acquisition of equipment with
UCC of $9000,
CC $23,000 and
CCA claimed for $14,000.
In S8, column 4 under Note 2. it reads "include amounts transferred under section 85..." But there is no field to enter CCA claimed. Do I enter the CCA claimed in the S8Supp field "Pre-valuation day depreciation" or perhaps. I know I can enter the UCC amount under the addition field but if the equipment is later sold there could be a capital gain instead of recapture.

Any help would be much appreciated.

Paul

Answer

S8 would not calculate a capital gain, you would have to maintain adequate records to assess the recapture or capital gain at the time of disposition, so keep details of what was behind the totals.  You would not have to enter CCA claimed as the CCA claim is made by the taxpayer claiming the CCA, it is not transferrable.

I think the answer is to enter the UCC under adjustments, other (column 4?) or half year exempt additions (since they should have been acquired from another person/business that acquired them previously and would have already been subject to the 1/2 year rule); of course the S85 documents have a late filing fee (must be filed by the first taxpayer to file a return that is party to the rollover on their normal filing deadline), so CRA will know the details.  The point of S85 is that the taxpayer acquiring the assets via S85 should take over the same position as the taxpayer transferring the assets, so I suspect the half year rule would not apply.

Hope this helps, but S85 stuff occurs so rarely that I am not certain.
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