SR&ED capital property records: a 2026 checklist

Capital property can be part of an SR&ED claim again for qualifying depreciable property acquired after December 15, 2024. The first practical job is to prove what the property is, when it became available for use, how it was used, and how the amount reaches Form T661.

The record should make those facts traceable without forcing a reviewer to reconstruct them from the general ledger months later.

At a glance

Reviewed September 8, 2026. This checklist reflects the enacted federal rules, Form T661 (26), and the CRA's capital-expenditures guidance available on that date. It does not decide whether a particular property or project qualifies.

• Property acquired before December 16, 2024 does not qualify under the restored capital rules.
• A capital expenditure must relate to qualifying depreciable property used for SR&ED carried on in Canada and related to the claimant's business.
• The form asks for property names, costs, projects, and use information. Keep the working records behind those entries.
• Property used mainly, but not almost entirely, for SR&ED may need a shared-use-equipment analysis rather than treatment as an SR&ED capital expenditure.

The Income Tax Act, paragraph 37(1)(b) provides the statutory starting point. The CRA's SR&ED Capital Expenditures Policy explains the current administrative treatment.

Start with the property, not the tax line

Create one record for each property under review. Give it a stable name that the technical team, accounting records, fixed-asset register, and T661 schedules can all use.

Record the supplier, invoice date, acquisition date, and the date the property became available for use. Keep the purchase agreement, invoice, proof of payment, delivery record, installation costs, customs or transportation records, and any commissioning evidence that supports the capital cost. The available-for-use date matters because subsection 37(1.2) of the Act deems the expenditure not to have been made before the property became available for use.

Do not assume every durable purchase belongs in the SR&ED pool. Land, inventory, and most buildings do not fit the capital-property rule described by the CRA. Software and licences can be current or capital depending on their nature, purpose, and expected life. A tool used to perform SR&ED can also differ from software intended to be incorporated into a product.

The classification deserves its own note. Record who made it, which source records were reviewed, and any accounting or tax judgement that still needs confirmation.

Connect operating time to the projects

The current T661 asks for the names of the 10 most expensive capital properties used in each project at line 262. Line 263 asks for each property's SR&ED project use as a percentage of its total operating time for the tax year.

That percentage needs a working trail. Depending on the property, useful records may include equipment logs, booking calendars, machine telemetry, run sheets, lab notebooks, maintenance records, operator notes, or project schedules. Keep the original exports and explain how the denominator was chosen. Total operating time should reflect the way the property normally runs or functions, not simply the claimant's preferred allocation.

When one property supports several projects, preserve the project-level calculation and reconcile the pieces to the total. If commercial production, routine testing, training, or other work also used the property, keep that use visible. A clean percentage with hidden competing use is difficult to defend.

For context on the current form structure, see Form T661 (26): what changed, line by line.

Reconcile Part 2, Part 3, and Part 6B

Part 6B asks for information on the 20 most expensive capital expenditures across all SR&ED projects claimed in the year. Box 780 identifies the property, box 782 records its capital cost, and box 786 lists the project numbers in which it was used. The property names should match the names used at line 262.

Build a reconciliation with one row per property. Include:

• the stable property name;
• the capital cost and its supporting cost build-up;
• the acquisition and available-for-use dates;
• the related project numbers;
• the operating-time evidence and project percentages;
• the amount included at line 390;
• the corresponding Part 6B entry; and
• the treatment in the fixed-asset register, financial statements, and Schedule 8.

The CRA's policy specifically points to invoices, purchase contracts, cancelled cheques, planning documents, use logs, and schedules that reconcile Schedule 8, Form T661, and the financial statements. A preparer may use a different working format, but the same facts still need to meet in one place.

Separate capital property from shared-use equipment

Property intended to be used all or substantially all of its operating time for SR&ED may meet the capital-expenditure test if the other conditions are satisfied. The CRA currently describes all or substantially all as 90% or more.

Property used primarily for SR&ED, meaning 50% or more but less than 90% of operating time, may instead fall under the shared-use-equipment rules. Those rules have their own timing tests and Part 6C reporting fields. Keep the purchase date, operating-time evidence, project numbers, and first-term or second-term analysis together.

This distinction is more than a label. It changes how the expenditure reaches the claim. If the usage evidence does not support the category, pause the calculation rather than rounding the facts toward a threshold.

Keep disposition and change-of-use records

The file should not end when the property is first claimed. Record a sale, transfer, conversion to commercial use, loss, or other change in use. Preserve the date, proceeds or fair market value evidence, buyer relationship, and the remaining amount in the SR&ED expenditure pool.

Those facts may affect the pool, capital cost allowance, or investment tax credit recapture. They also explain why later-year balances differ from the original acquisition schedule.

A compact review before filing

Before finalizing the claim, have the technical and financial reviewers compare the same property list. Confirm that each name is consistent, every project number exists, the operating-time calculation can be reproduced, and the amounts reconcile to the accounting records.

Then inspect the form as a filing document. Part 2 is project-specific, Part 6B is claimant-wide, and the financial lines summarize the amounts. A mismatch between those views is usually a sign that the working schedule is incomplete.

For a broader calculation walkthrough, see How much is an SR&ED claim worth? A 2026 worked example.

Frequently asked questions

Does every equipment purchase used in R&D qualify?

No. The work, property type, acquisition timing, location, business relationship, available-for-use date, and use pattern all matter. A purchase can support product development without meeting the SR&ED capital rules.

What is the most important usage record?

Use the record that best reflects how the property actually operates. Equipment logs may be persuasive for one asset, while booking records, telemetry, or lab documentation may fit another. The calculation should explain both SR&ED use and competing use.

Can the fixed-asset register replace the project records?

No. It can establish the accounting identity and cost of a property, but it usually does not show which SR&ED projects used it or the percentage of total operating time attributable to each project.

Should shared-use equipment appear in Part 6B?

Shared-use equipment has separate reporting in Part 6C. Review the classification before filling the form so the same property is not pushed through the wrong path.