Entrepreneurship & Small Business

How to report GIFI 1775 Cumulative Amortization

  • Last Updated:
  • Feb 12th, 2018 5:57 pm
[OP]
Jr. Member
Apr 7, 2014
107 posts
11 upvotes
Toronto, ON

How to report GIFI 1775 Cumulative Amortization

I am not sure how line 1774/1775 in the GIFI is supposed to be filled out.
Are these amounts always cumulative for ALL previous years, or should they carry on from last year's NET value?
If they are cumulative for all years, that means these amounts will always keep going up and up forever..

For example, if I keep buying computer equipment, I have to keep adding to this amount, and always keep carrying the amortized amount for previous equipment, so the amortized value & computer equipment value will keep going up and never have any way to ever go down?

It makes more sense to report for the current year, the NET value from last year + new equipment and current year's amortization.. but I'm not sure what is expected.

The result is the same, because NET will always be same regardless of which method you pick, I just don't know what is really expected here.

Ex.
last year I have
$1000 equipment, $500 amortization
This year I have
$200 equipment $100 amortization

Do I report
1200 and 600 ($600net)
or
700 and 100 ($600net)

this is just a basic example, I know I have to use the correct CCA class, etc.
The 700/100 makes most sense to me, since the equipment is now worth $700 for this year, and I believe line 1774 is asking for the current value?.. But I don't know why they call it "accumulated" amortization..
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