A separate category of property was created due to the additional expenses allowable when determining income. This property known as Eligible Capital Property (ECP) is used for the purpose of gaining and producing income for a business, other than those described as Tangible and Intangible Property that is depreciable under normal conditions.

  • goodwill
  • incorporation costs
  • licences
  • a customer list
  • franchise of “unlimited duration” (limited is depreciable)

Normally, a percentage of the total cost is taken as initial ECP and then depreciated at a constant rate until the amount is depleted. When disposed of, the same percentage used upon acquisition is used to calculate the base of the disposition (check local Tax Acts for differences).  X/365 Days