CCA Class [U0703]

The CCA Class update [U0703] is used to add, change, or delete CCA (Capital Cost Allowance) information. Information defined for each class is used as the definition of the pool of that class for all tax entities. It is also used as default values when an asset is added. If information for the class is changed after it is added to the system, changes are recorded on the Maintenance report which is produced by the End of Period procedure [U0416]. There is no limit to the number of classes that may be established in LeasePak.

Deletion of a class is not allowed if an asset or a pool with non-zero undepreciated capital cost exists for the class selected for deletion.

 

 

This screen is used to select the CCA Class update [U0703] option.

• ADD
  Adds a new CCA class.
  
  
• CHANGE
  Modifies an existing class.
  
  
• DELETE
  Remove an existing class.

 

This screen is used to specify the CCA class that will be added, changed, or deleted.

If adding a class, class code must not exist on the file. If changing a class, the class code must exist on file already. Use the drop down help for a list of codes already on file.

 

Add or Change CCA Class

This screen is used to add or change information for the class selected. If changing a CCA class, the current class information already on file is displayed.

• DESCRIPTION
  Enter or change the CCA class description.
  
  
• ACCRUAL METHOD
  Enter or change the CCA calculation method for the class. This method determines how the capital cost allowance on a pool or an asset is calculated. Use HELP for a list of valid accrual methods. Valid methods are:

  DBL Declining Balance method

  DBLH Declining Balance method with half-year convention

  SL02 Straight Line two years

  SH02 Straight Line two years with half-year convention

  BYPS Bypass

  If BYPS is entered, NONE is defaulted to the DISPOSITION MTH field and cannot be changed. In addition, the LEAST AMOUNT field will be skipped if the method entered is not DBL or DBLH.

  Note that if this field is changed, the accrual method of all pooled assets will be changed to the new method entered. However, pooled assets with BYPS method are not changed.
  

• LEAST AMOUNT
  Enter or change the least amount on which the capital cost allowance is calculated. If the undepreciated capital cost of an asset or a pool is not a terminal loss nor recapture of capital cost allowance, and the amount is equal to or less than the LEAST AMOUNT, then the capital cost allowance for the asset or the pool is the amount of the undepreciated capital cost. That is, the effective rate is not applied to the undepreciated capital cost to arrive at the capital cost allowance. This field is only applicable to the DBL and DBLH methods.
  
  
• DISPOSITION MTH
  Enter or change the CCA disposition method for the class. It is used to determine if a terminal loss or recapture is allowed on an asset or a pool. Use HELP for a list of valid disposition methods. Valid disposition methods are:

  GEN General method

  NONE Neither terminal loss nor recapture is allowed on the asset or the pool associated with the class.

  NONE is displayed and may not be changed if the accrual method is BYPS.

  Note that if this field is changed, the disposition method of all pooled assets will be changed to the new method entered. However, pooled assets with NONE method are not changed.
  

• DEF ASSET TYPE
  Enter or change the asset type generally associated with the class code. These types are established by LeasePak. Valid types are:

  L Specified leasing property

  O Asset which is not a specified leasing property but is placed in a separate class

  P Pooled asset

  Leave this field blank if a default asset type for the class is not desired.

• RATE SCHEDULE - EFFECTIVE DATE (scrolled area)
  Enter or change the date in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706], on which the corresponding class rate becomes effective. The same date must not be entered more than once in the array. At least one schedule must be established. Up to 10 schedules may be entered.
  
  Note: This field is not accessible if the CCA accrual method is SL02, SH02, or BYPS. Any attempt to enter or change the Rate Schedule-Effective Date will cause LeasePak to terminate abnormally.
  
  
• RATE SCHEDULE - RATE (scrolled area)
  Enter or change the rate that is effective on the date entered. If the rate is 6%, enter __6.00000, not ___.06000.
  
  If multiple rates are effective during a fiscal year, the rates are prorated by the total days the rates are effective. For example, if 40.00000% is effective for 184 days and 35.00000% is effective for 181 in a fiscal year which is not a leap year, then an effective rate of 37.52000% (40.00000% * 184/365 plus 35.00000% * 181/356) is used.
  
  At least one schedule must be established. Up to 10 schedules may be entered.
  
  Note: This field is not accessible if the CCA accrual method is SL02, SH02, or BYPS. Any attempt to enter or change the Rate Schedule-Rate will cause LeasePak to terminate abnormally.

 

Delete CCA Class

A CCA class may not be deleted from the system if an existing asset or a pool with a non-zero undepreciated capital cost balance is associated with the class selected for deletion.

This screen is used to delete a CCA class from the table. The information associated with the CCA Class code is displayed and should be verified as the correct CCA Class to delete. All schedules defined for the class are displayed; scroll up or down for verification.

• IS THIS THE CORRECT CCA CLASS TO DELETE (Y/N)?
  Enter Y to delete this CCA class. Enter N to leave it on file.

 

LeasePak  Reference Guide

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