Line 9935 - Allowance on eligible capital property

You may buy property that does not physically exist but gives you a lasting economic benefit. Some examples are goodwill, franchises, concessions, and licences for an unlimited period. We call this kind of property eligible capital property. The price you pay to buy this type of property is an eligible capital expenditure.

You cannot deduct the full cost of an eligible capital expenditure, since it is a capital cost and provides a lasting economic benefit. However, you can deduct part of its cost each year. We call the amount you can deduct your annual allowance.

We consider franchises, concessions, and licences with a limited period to be depreciable properties, not eligible capital properties.

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