B6120 Formula Sheet

Standby charge
2% the cost of the automobile (GST/HST included) to the employer where the employer owns the
automobile the number of months the automobile is available to the employee in the year
OR
2/3 the annual lease payments (GST/HST included) (excluding any portion related to i n s u r a n c e ) where the
employer leases the automobile
Reduction available to basic standby charge (If required to use auto for employment purposes and more than 50%
of distance traveled related to employment)
The reduction is calculated by applying a fraction to the base standby calculation. The fraction i s calculated as A B.
A = the lesser of:
i.
Total personal kilometres driven; and
ii.
1,667 km per month in which the vehicle is available to the individual
B = 1,667 km per month in which the vehicle is available to the individual

Automobile operating expense benefit

For situations where a standby charge has already been assessed to the employee on the a u t o m o b i l e , the
operating expense benefit is calculated as the lesser of:
i. 1/2 standby charge (only if the automobile is used more than 50% for employment purposes)
AND
ii. A prescribed amount # of personal km driven in the year
The prescribed amount is $.26/km for 2016.

Reimbursement of Automobile Expenses

For 2016, the prescribed limits are $0.54 per km for the first 5,000 km per employee and $0.48 per km thereafter.

Business Investment Loss

A taxpayers business investment loss is the amount of the taxpayers capital loss from the d i s p o s i t i o n of:
a share of a SBC OR a debt owed to the taxpayer (other than a non-arms length inter-corporate debt) by an SBC
REDUCED BY:

capital gains exemptions claimed in previous years (unless those claims have already r e d u c e d some
other BIL)

Capital gains reserve

The reserve that may be claimed is limited to the lesser of the following:
a reasonable reserve, which is ordinarily calculated as follows:
Proceeds payable after year-end Capital gain
Total proceeds
a fraction of the capital gain which essentially requires at least 1/5 of the gain to be
r e c o g n i z e d in the year of the disposition and in each of the four years thereafter (80% Yr1;
60% yr2, 40% yr 3, 20%yr 4.)

B6120 Formula Sheet

Principal Residence Exemption
1 + # Yrs. Designated Principal Residence
Number of Years Owned

X Gain

CCA Classes
Class

CCA rate/method

Assets
Buildings acquired after 1987
Buildings non-residential use, acquired after March 18, 2007 and not used by any
person prior to March 19, 2007

4% declining balance

1*

6% declining balance

1*

10% declining balance

Buildings at least 90% manufacturing and processing use, acquired after March
18, 2007 and not used by any person prior to March 19, 2007

3
8

5% declining balance
20% declining balance

Buildings acquired prior to 1988

Furniture and fixtures; office equipment including fax machines and copiers; any
equipment not included in another CCA class

10

30% declining balance

Automotive equipment; includes passenger vehicles costing up to $30,000

before taxes and also other automotive equipment such as delivery vans

10.1

30% declining balance

Passenger vehicles costing more than $30,000 before tax

12

100%

Library books; tableware; kitchen utensils costing less than

$500; dies, patterns and moulds; medical and dental instruments; tools costing less
than $500; linens; feature films; computer software that is not systems software

13

Straight-line based on minimum

of five years

Leasehold improvements

14

Straight-line based on days in

legal life

Patents, franchises, concessions or licences that have a l i m i t e d life. Patents, could also be
put in Class 44.

5% declining balance
7% if pre 2017. See note

Certain intangible assets not included in any other class acquired after January 1, 2017,
including goodwill, trademarks, customer lists, incorporation costs in excess of $3,000,
farm quotas, and franchises, licences and concessions that do not have a specific legal
limited life. This class also includes all eligible capital property acquired before 2017. The
CCA rate for this pre-2017 property is increased from 5% to 7% for taxation years before
2027.

29

8% declining balance
Straight line
25%/50%/25%

Road, sidewalk, airplane runway, parking area

Manufacturing and processing equipment acquired after March 18, 2007 and
before 2016

43

30% declining balance

Manufacturing and processing equipment

44

25% declining balance

Patents acquired after April 26, 1993

50

55% declining balance

Computer hardware and systems software acquired after March 18, 2007
and before January 28, 2009 and
after January 31, 2011

53

50% declining balance

Manufacturing and processing machinery and equipment acquired after 2015

and before 2026

14.1

17

*Must elect to put the building in a separate class from other buildin