|original cost of an item||$15,000|
|sales proceeds of the item||$5,000|
|UCC of the CCA class beginning of year||$4,000|
|disposal (lower of $5,000 and $15,000)||($5,000)|
|balance of UCC after disposal||($1,000)|
|recapture added to income||$1,000|
|final UCC||$ 0|
The recapture of $1,000 is included in income, and the UCC of the class is then zero.
Recapture rules do not apply to passenger vehicles included in Class 10.1. See Passenger vehicles - expense limitations on the Small Business page re class 10.1 vehicles.
Revised: February 23, 2016
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