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
|Class||Type of Asset||CCA Rate|
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
|8||Properties that are not included in another class i.e. furniture, equipment, fax machine, photocopiers||20% – with ½ year rule|
Cars and Computer hardware and operating software for that hardware
|30% (capital cost included GST + PST) – with ½ year rule|
|10.1||Cars > $30,000 (passenger cars, not used primarily to transport equipment and materials and must have more 2 passenger seats)|
30% – with ½ year rule
|12||Tools, 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
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|
|14||Intangibles 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)
|14.1||Starting 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%.
|17||Parking Lot||8% – with ½ year rule|
|43||Machinery 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|
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|
|44||Patents or rights to use patented information||25% – with ½ year rule (we have option for patent to use 14 or 44)|
|50||CPU hardware and operating software for that hardware purchased from 3/19/2007 to 1/27/2009 and after 1/31/2011||55% – with ½ year rule|
|52||CPU hardware/operating software purchased from 1/28/2009 to 1/31/2011||100% – no 1/2 year rule|