Reconciliation of net book value and undepreciated capital cost in the T2 module in ProFile

About the S8 Supplementary (S8Supp) form in ProFile

This form shows a reconciliation of net book value (NBV) with undepreciated capital cost (UCC) of capital assets.

Use the Other section on the form to include capitalized expenses that are not CCA class additions for the purpose of CCA calculations.

Amounts populating on this form originate from various forms, including:

• Carryforward from prior year tax return (in purple text)
• Schedule 100
• Schedule 125
• Schedule 8
• Schedule 6

This form does not transmit to the CRA upon EFILE.

Scenario

Financial Statements

Your company decides to purchase $6,000 worth of computer equipment (Schedule 100 GIFI code 1774).

Your company decides to depreciate the purchase at 10% per year ($600 in year one - S100 GIFI code 1774 and S125 GIFI code 8670).

Schedule 8

On the tax side, you have entered your asset as class 10 with the cost being $6,000 and CCA for the year being $900, calculated as $6,000 x 0.5 x 30%. (The 0.5 takes into account the half-year rule.)

Notice on S8supp that there is no timing difference between NBV and UCC.

Note: Schedule 8 CCA and Schedule 125-depreciation expense (300) match the difference between Sch. 100 Asset and Sch. 8 UCC at year's end (C=D).

When carrying forward the file, the $300 will carry forward on top of the S8Supp.