Capital Cost Allowance Table

Capital Cost Allowance Table

Below is a summary of the common CCA Classes: 

For any additional CCA Classes refer to the CRA website link: https://bit.ly/2r3AWfQ

ClassType of AssetCCA Rate
1Brick Building

4%residential buildings purchased after 1987

10%non-residential buildings acquired by a taxpayer after March 18, 2007, used for manufacturing or processing in Canada of goods for sale or lease.

6% – all other non-residential (i.e. commercial property) acquired after March 18, 2007

 For the non-residential buildings, each eligible building must be allocated to a separate class 1 pool.

Examples of non-residential real property: are hospitals, office buildings, refineries, warehouses, parking garages, retail shops, restaurants, manufacturing facilities, and other commercial establishments.

Examples of residential buildings: Single-family homes, multi-families, apartment buildings, condominiums, co-ops are all residential.

***Each Rental Property that costs $50,000 or more needs to be in a separate class.

Class 1 is subject to ½ year rule

8Properties that are not included in another class i.e. furniture, equipment, fax machine, photocopiers20% – with ½ year rule
10

Cars and Computer hardware and operating software for that hardware

  1. Passenger vehicle  costing < $30K
  2. Non-Passenger vehicle  of any cost = Vehicles used primarily for the transportation of goods and equipment; with 1 diver seat + 2 or less passenger seats.
  3. Computer hardware and systems software for that equipment, including ancillary data-processing equipment acquired before March 23, 2004, or after March 22, 2004, and before 2005, and you made an election.
30% (capital cost included GST + PST) – with ½ year rule
10.1Cars > $30,000 (passenger cars, not used primarily to transport equipment and materials and must have more 2 passenger seats)

30% – with ½ year rule

  • Deemed cost = 30,000+ sales tax – ITC for GST/HST
  • NO CCA Recap or TL possible under this Class
  • We take 1/2 of CCA in year of disposal (this is the only class where we do this)
  • Create a separate Class 10.1 for each eligible vehicle
12Tools, Utensils, Dies, Moulds, Kitchen Stuff, Application Software

Tools and utensils <$500 = 100% – no ½ year rule

Tools and utensils >$500 = 100% – with ½ year rule

Kitchen stuff = 100% no 1/2 year rule

Dies and Mould, Application Software = 100% with ½ year rule

13

Leasehold Improvement

Leasehold Improvements are the structural changes you make to leased space to make it suitable for your business needs.

Straight Line over remaining life of lease  + 1st renewal term (minimum 5 yrs, maximum 40 years) – with 1/2 year rule
14Intangibles w/ limited UL – patent, licence, franchise

Straight line over useful life in DAYS  – no ½ year rule

(for patent we can choose class 14 or 44)

14.1Starting January 1, 2017, include in Class 14.1 property that was previously recorded as CECA i.e. goodwill, unlimited life intangibles, etc. 

5% rate on additions after January 1, 2017.

CCA deduction is greater of:

a) $500 or

b) actual CCA amount

Transitional rules for properties transferred from schedule 10 (CECA) = Old CECA x 7%. 

17Parking Lot8% – with ½ year rule
43Machinery and equipment, used for the manufacturing and processing (M&P) in Canada of goods for sale or lease, that are not included in Class 29.30% – with ½ year rule
29

Machinery and equipment used for manufacturing and processing (M&P) in Canada of goods for sale or lease, acquired after March 18, 2007, and before 2016 (that would otherwise be included in Class 43)

CPU hardware and operating software for that hardware purchased after March 18, 2007, and before January 28, 2009

50% Straight Line – with ½ year rule
44Patents or rights to use patented information25% – with ½ year rule (we have option for patent to use 14 or 44)
50CPU hardware and operating software for that hardware purchased from 3/19/2007 to 1/27/2009 and after 1/31/201155% – with ½ year rule
52CPU hardware/operating software purchased from 1/28/2009 to 1/31/2011100% – no 1/2 year rule

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