Capital and Property Rules is part 3 of 4 of the CPA Ontario Tax Primer. Capital and Property Rules focuses on the taxation of capital assets and investment income, two areas that frequently create confusion in practice. Learners gain a practical understanding of capital cost allowance, including acquisition and disposition rules, and explore how income from property is taxed differently from business income. Emphasis is placed on understanding both the rules and their underlying rationale.

Topics Include:

• Types of corporate income and their tax treatment
• Differences between accounting depreciation and capital cost allowance
• Core principles governing CCA
• Common CCA classes and rates
• Special CCA rules in the year of acquisition
• Special CCA rules in the year of disposition, including recapture and terminal losses
• Definition and sources of property income
• Interest, dividends, and common deductions from property income

Building on the income determination concepts from Part 1 and Part 2 of the CPA Ontario Tax Primer, this part focuses on capital assets and property income. To complete your understanding of how capital transactions are taxed and how income ultimately flows into corporate tax reporting, proceed to Part 4, where capital gains and the T2 return are brought together in practice.

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• Learners seeking clarity on capital assets and depreciation for tax purposes.
• CPAs and finance professionals working with fixed assets or rentals
• Professionals involved in real estate or investment activities
• Learners preparing for capital gains and disposition based taxation
• Non tax specialists who need awareness of capital and property tax rules