Schedule 8 CCA Requirement Checker
Three answers on whether Schedule 8 belongs on the return, why a carried balance is enough on its own, and what a disposal changes.
Written and reviewed by Sharad Gondaliya, CPA (Ontario), CPA Ontario Membership 61040184.
Last reviewed: October 29, 2026
Answer all three questions.
Gondaliya CPA Professional Corporation is a registered EFILE electronic filer. Returns are prepared and transmitted in Canada. Credentials are never shared and never used offshore.
What Schedule 8 Reports
Schedule 8 records capital cost allowance and the undepreciated balance carried forward. It is the schedule that tracks what the corporation owns in the way of equipment, vehicles and similar property, and how much of their cost is still to be claimed.
It is filed with the T2 where the corporation holds depreciable property, and a nil year files it like any other year.
A Carried Balance Is Enough on Its Own
The schedule is not required only where something was bought or claimed. An undepreciated balance brought forward from an earlier year is enough: the balance has to be carried, and Schedule 8 is where it is carried.
That is why a dormant corporation that bought a van four years ago and has done nothing since still files Schedule 8. The van did not stop existing because the corporation stopped trading.
| The position | Schedule 8 required | Effect on nil status |
|---|---|---|
| Depreciable property is held | Yes | None |
| An undepreciated balance is carried forward | Yes | None |
| Property was disposed of during the year | Yes | The year is not nil |
| Neither held nor carried forward | No | None |
Claiming Nothing in a Quiet Year Is a Choice
Capital cost allowance is a claim, not an obligation. A corporation with no income has nothing to reduce, so claiming allowance in a nil year generally achieves nothing and simply shrinks the balance available later.
The balance carries forward either way, which is the point of the schedule. The guide to Schedule 8 and loss continuity goes further into the interaction with losses.
A Disposal Ends the Nil Year
Selling or transferring depreciable property is a disposition, and a disposition is activity. The year it happened in is not a nil year, whatever else the corporation did or did not do.
A holding corporation with investment income, a rental corporation and a corporation that paid or received a dividend are not nil. Those are handled by Gondaliya CPA Professional Corporation at gondaliyacpa.ca at $350.00 plus HST per year.
This matters most at a wind-up, because a corporation cannot be dissolved holding property. The dissolution readiness checker covers that sequence.
Frequently Asked Questions
When is Schedule 8 required?
Where the corporation holds depreciable property, or carries an undepreciated balance from an earlier year. Either one on its own is enough.
Does a nil year file Schedule 8?
Yes, where depreciable property is held or a balance is carried forward. The property does not stop existing because the corporation stopped trading.
Do I have to claim capital cost allowance?
No. It is a claim rather than an obligation, and a corporation with no income has nothing to reduce. The balance carries forward either way.
What if I sold the property during the year?
A disposition is activity, so that year is not a nil year. Those returns are handled by Gondaliya CPA Professional Corporation at gondaliyacpa.ca at $350.00 plus HST per year.
Is Schedule 8 covered by the fee?
Yes. Where the year is nil, Schedule 8 and the loss continuity are recorded within the fee of $300.00 plus HST per tax year.
Nil T2 Filing, $300.00 plus HST per tax year
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