Entering capital assets

Use the Capital Assets dialogue box to update and maintain information on your capital assets. A capital asset is any long-lived tangible or intangible asset that contributes to the operation of the business throughout its service life. All capital assets except land are depreciated over the course of their useful life.

To maintain your business’s capital assets, select Capital Assets from the Setup menu. The Capital Asset dialogue box appears.

This section explains how to add capital assets you owned from previous years.

Note: To add a capital asset you purchased this fiscal year, enter it in the Transaction Entry dialogue box (see Transaction Entry).

To add a capital asset:

1. Select Capital Assets from the Setup menu. The Capital Asset dialogue box appears.
2. Click Add. The Add Capital Asset dialogue box appears.
3. Enter the following information:
   • CCA class – Select the CCA class number the capital asset belongs to from the drop-down menu. See CCA schedule for information on capital cost allowance.
   Note: If the number isn’t in the list, add it to the CCA schedule (see Adding a class to the CCA schedule). See CCA classes and rates for a list of CCA classes and rates.
   • Description – Enter a description for the capital asset.
   • Tag - Enter a reference to sort your assets. For example dairy, cattle, tractors, etc.
   • Serial number – Enter the serial number, if applicable.
   • Purchase date – Enter the date you purchased the capital asset.
   • Business % – Enter a value between 1 and 100 to indicate the percentage of the asset that’s used for business purposes. If the percentage is less than 100 per cent, the remainder is classified as personal and allocated to a personal drawings account. For historical capital assets, this percentage is for reference only.
   • Personal drawings account number – Enter or select the personal drawings account number for the capital asset. Click  to display a list of personal drawings account numbers. This field isn’t available if the Business % is 100.
   • Original cost – Enter the total original cost of the capital asset, including any GST/HST and PST you haven’t claimed for it.
   • Adjusted cost – Enter the adjusted cost, which is the original cost minus any business investment tax credit taken on this asset.
   • GST/HST claimed – If you purchased the asset after December 31, 1990, and paid GST/HST at that time, enter the total GST/HST claimed on the capital asset.
   • PST claimed – Enter the total PST claimed when you purchased this capital asset.
   • Business portion and Personal portion – Once you enter the business per cent, the business and personal portions are calculated and displayed here. The business portion is used to calculate capital gains and losses and the annual CCA expense. The personal portion is for your reference.
   • Asset life (years) – Enter the capital asset’s expected useful life in years.
   • Salvage value – Enter the capital asset’s estimated value at the end of its useful life.
   • Depreciation rate – Enter the yearly depreciation rate as a per cent. For example, if the depreciation rate is 6.25%, enter 6.25.
   Note: The Asset life, Salvage value and Depreciation rate values are used by the asset depreciation management tool to calculate different types of depreciation for the asset.
   • Net book value – Enter the asset’s net book value, which is equal to the asset’s original cost minus depreciation and amortization. This value will appear on the capital asset schedule report.
4. If the purchase and sale of a capital asset recorded through a transaction entry, the details will appear in the box on the right side of the screen. Click the Audit # to open the transaction for review or editing.
5. Click Save.

Last updated on March 24, 2014 by FCC AgExpert