Which of the following statements with respect to terminal losses is NOT correct? Terminal losses are deducted from the ending UCC to leave a balance in the Class of nil

Taxation Dec 17, 2020

Which of the following statements with respect to terminal losses is NOT correct?



		
Terminal losses are deducted from the ending UCC to leave a balance in the Class of nil.





		
A terminal loss occurs when there are no assets left in the Class and there is a negative balance in the Class at the end of the year.

		
If assets remain in a CCA Class, there will not be a terminal loss in that Class.







		
Terminal losses are deducted in full in the determination of Net Business Income.

Expert Solution

A terminal loss occurs when there are no assets left in the Class and there is a negative balance in the Class at the end of the year.

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