Canadian Tax and
Financial Information
Eligible Capital Property does not research or endorse any product   or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?

Need an accounting, tax or financial advisor? Look in our Business Directory.      Stay Connected with!      Internet Explorer - Use compatibility view for calculators to work properly!

What's New
Personal Tax
Sales Taxes
Free in 30!
Financial Planning
Real Estate
Stocks Bonds etc.
British Columbia
Atlantic Provinces
Federal Budget
Provincial Budgets
Statistics etc.
Site Map
Business Directory
Advertise With Us
Contact Us/About Us
Links & Resources

Business -> Eligible Capital Property
Income Tax Act s. 14(5), 20(1)(b), 54, 248(1)

Eligible Capital Property, Eligible Capital Expenditures and Cumulative Eligible Capital Deduction

Some examples of eligible capital property are goodwill, trademarks, and some patents, which are considered intangible assets.  The costs incurred to buy these assets are called eligible capital expenditures.  Costs incurred for incorporation, reorganization or amalgamation also qualify as eligible capital expenditures.

Eligible capital expenditures cannot be deducted in full, and are not eligible for capital cost allowance (CCA).  They may qualify for a partial deduction called a cumulative eligible capital deduction.

When eligible capital property is purchased, in most cases 75% of the cost is recorded in a "cumulative eligible capital (CEC) account".    This is an account which tracks, for tax purposes, your eligible capital property acquisitions and dispositions.  7% of the balance of this account can be deducted from income each year.

Information on Canada Revenue Agency (CRA) website:


Income Tax Interpretation Bulletin IT143R3 - Meaning of Eligible Capital Expenditure


Eligible Capital Expenditures - Sole Proprietors and Partnerships


T4002 Business and Professional Income Guide - See Chapter 5 Eligible Capital Expenditures - calculation of eligible capital deduction for self-employed sole proprietors or partnerships.


T4012 T2 Corporation Income Tax Guide - Look for cumulative eligible capital deduction


T2SCH10 - Cumulative Eligible Capital Deduction

Revised: February 16, 2012


Copyright © 2002 - 2015 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage.  See our Business Directory for tax, accounting and finance-related firms in your area.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.