CCA (Capital Cost Allowance) - Classes for depreciable property

If you have assets of a business (buildings, equipment, vehicles, etc.), you can claim a yearly deduction on the depreciation on the cost of these assets, also known as Capital Cost Allowance (CCA). The following are the more commonly used CCA classes and their rates:

Class Description

Class 1 (4%), Class 3 (5%), Class 6 (10%)

A building may belong to either Class 1, 3, or 6 depending on the date you bought it and what the building is made of.

Class 8 (20%)

Certain property not included in any other class is included in Class 8. Examples are, furniture, appliances, tools costing more than $500 or more per tool, and other equipment used in business.

Class 10 (30%), Class 10.1 (30%)

Computer hardware equipment and systems software are included in Class 10 if you bought them on March 23, 2004, or after March 22, 2004, and before 2005, and you made an election. Also included in these classes are passenger vehicles. Depending on the type of vehicle, it may fall in Class 10 or Class 10.1.

Class 12 (100%)

This class includes china, cutlery, linen, uniforms, dies, jigs, moulds, cutting or shaping parts of a machine, tools, computer software (except systems software). Also included are video-cassettes, video-laser discs, and digital video disks that you rent out and do not expect to rent to any person for more than 7 days in a 30 day period.

Class 29

You can elect to put in this class, eligible machinery and equipment used in Canada for the manufacture and process of goods for sale or lease. The machinery or equipment must have been bought after March 18, 2007, and before 2016. 

Class 38 (30%)

This class includes power operated and movable equipment, bought after 1987, used for excavating, moving, placing, or compacting earth.

Class 43 (30%)

This class includes eligible machinery and equipment, used in Canada for the manufacture and process of goods for sale or lease that are not included in Class 29.

Class 45 (45%)

If you acquired computer hardware and systems software after March 22, 2004 and before March 19, 2007, you can include them in this class.

Class 46 (30%)

Include this class, data network infrastructure equipment and systems software for that equipment if you bought them after March 22, 2004.

Class 50 (55%)

 

Computer hardware equipment and systems software, as well as its ancillary data processing equipment, bought after March 18, 2007 is included here.

 

Class 52 (100%)

 

Computer hardware equipment and systems software, as well as its ancillary data processing equipment, bought after January 27, 2009 and before February 2011, is included here.

If you are self-employed, calculate the CCA on your depreciable property on form T2125: Statement of Business or Professional Activities. If you have rental income, use form T776: Statement of Real Estate Rentals to calculate the CCA.

 

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