# Terminal loss and CCA. Can I claim this?



## imaginenewmedia (Apr 4, 2012)

I'm a videographer. In 2012 I purchased a used camcorder for $2000. (It was an older model, but in good condition, and one that I'm familiar with). I lumped it in with my other class 8 capital purchases and undepreciated amounts. Last month this camera broke down, and is unrepairable. The value of it is essentially zero. So far I've claimed 10% for 2012 (half year rule) and 20% of the balance for 2013. resulting in a remaining UCC of around $1440 for this item. I still have numerous capital items remaining in that class (probably around $5000 UCC) Can I recapture the lost value of this camcorder? 
I've read the rules and it looks maybe like you cant, if you still have other items in the same class. This doesn't seem to make sense to me.
Any thoughts?
Andy


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## WiseOwl (Jan 1, 2015)

Class 8 assets are pooled together (i.e., the assets are not considered 'separately'). You always remove assets from these classes at the _lower of original cost or proceeds_. In your case the proceeds are $nil. No terminal loss/recapture is triggered until the last asset in the class is disposed of (i.e., the 'pool' becomes empty).


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## imaginenewmedia (Apr 4, 2012)

Thanks WiseOwl! 
So, if I get this right, the UCC amount ($1440 for 2014) for the camera remains in that pool and I continue to get a declining deduction ad infinitum for this asset, even though I've disposed of the camera and declared the disposition? (i.e. as long as I still possess other items in that class)


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## Davis (Nov 11, 2014)

Yep. The purpose of pooling assets is to simplify the system, so that you don't have to track assets separately. Imagine if you had hundreds or thousands of assets, each being tracked on its own. It would be a nightmare. Instead, assets are pooled, and CCA rates are set to cover typical depreciation in the large majority of cases. The downside is that where inidividual assets depreciate faster or are disposed of, you can't write them off right away. On balance, the system is fair.


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