Record land and other non-depreciable capital (ACB only)

Some capital costs add to your property's adjusted cost base (ACB) for a future sale but are not depreciated. Land is the main one, along with acquisition legal fees and land-transfer tax. Record these as "ACB only, not depreciable" so they raise your cost base without showing up as a capital cost allowance (CCA) item. This is tooling, not tax advice.

Why this matters

• Land is never depreciable. Only the building and other depreciable assets go in a CCA pool. Putting land in a CCA class would be wrong.
• These costs still lower your capital gain when you sell, because they are part of your cost base.

How to record it

On the Tax page, in Capital assets (CCA), add the asset and choose "ACB only, not depreciable" in the CCA class dropdown (this option appears once the CCA engine is enabled for your account). Enter the description, the cost, and the date.

The asset then:

• stays off the CCA schedule and out of the undepreciated-capital-cost (UCC) pools, so it never shows a CCA claim,
• counts in your ACB when you record a property sale, so the capital gain is correct,
• appears on the per-class balance sheet under "Non-depreciable (ACB only)".

Good to know

• A depreciable improvement (a new roof, appliances, a furnace) still picks a real CCA class. Only use "ACB only" for land and acquisition costs.
• If you sell an individual component on its own first (for example you replace and dispose of an old asset), its cost leaves your property's cost base at that point, so it is not counted again when you later sell the whole property.
• The CCA engine is preview while the rates and rules are reviewed by counsel. Confirm with your accountant before you file.