CCA - Canada Half-year rule

1

I wasn’t able to find the exact answer I need in the topics, so I decided to give it a shot with a new one.
In Canada, possibly other countries, we have the half-year rule which reduces the amount (by half) that you can claim under the CCA in the year that you purchased the asset.

For my example I purchased a vehicle for $25,000, which falls under a class with a deprecation rate of 30%. My first year that I purchased the vehicle, due to the half-year rule, I can only claim 50% of the total purchase, which is $12,500 x 30%=$3750. The following year I am able to claim 30% of the remaining balance, in which the other $12,500 will be included in that remaining balance.

How am I to approach this?

2

Complete the depreciation worksheet and, before posting, reduce the depreciation amount by half for those assets subject to the half-year rule.

3

If you use straight-line depreciation, you have to calculate and enter the annual depreciation amount manually

4

Thank you!