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

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% – 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

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 Improvement

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

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

(for patent we can choose class 14 or 44)

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%. 

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