Common CCA Classes
| Class |
Rate |
Assets |
| Class 1 |
4% |
Buildings (brick, concrete) |
| Class 3 |
5% |
Buildings (pre-1988) |
| Class 6 |
10% |
Frame buildings, fences |
| Class 8 |
20% |
Office furniture, equipment |
| Class 10 |
30% |
Vehicles, computer hardware |
| Class 10.1 |
30% |
Passenger vehicles ($37,000+ limit) |
| Class 12 |
100% |
Tools <$500, software |
| Class 14.1 |
5% |
Goodwill, patents |
| Class 43 |
30% |
Manufacturing equipment |
| Class 50 |
55% |
Computer equipment (after 2011) |
| Class 53 |
50% |
Manufacturing property |
| Class 54 |
30% |
Zero-emission vehicles (up to $61K) |
CCA Calculation Method
Declining Balance Method
CCA Claim = UCC × Rate × (Days Owned ÷ 365)
Half-Year Rule
In the year an asset is acquired, only 50% of the normal CCA can be claimed.
Example Calculation
| Year |
UCC Start |
CCA Rate |
CCA Claim |
UCC End |
| 1 |
$50,000 |
30% × 50% |
$7,500 |
$42,500 |
| 2 |
$42,500 |
30% |
$12,750 |
$29,750 |
| 3 |
$29,750 |
30% |
$8,925 |
$20,825 |
| 4 |
$20,825 |
30% |
$6,248 |
$14,577 |
| 5 |
$14,577 |
30% |
$4,373 |
$10,204 |
Vehicle CCA (Class 10/10.1)
Passenger Vehicle Limits (2025)
| Type |
Maximum CCA Cost |
| Class 10.1 vehicle |
$37,000 + tax |
| Zero-emission (Class 54) |
$61,000 + tax |
Vehicle CCA Example
| Year |
UCC |
CCA (30%) |
Half-Year? |
| 1 |
$37,000 |
$5,550 |
Yes (50%) |
| 2 |
$31,450 |
$9,435 |
No |
| 3 |
$22,015 |
$6,605 |
No |
| 4 |
$15,410 |
$4,623 |
No |
| 5 |
$10,787 |
$3,236 |
No |
Zero-Emission Vehicles (Class 54)
| Feature |
Details |
| Rate |
30% declining balance |
| Enhanced first year |
Up to 100% in year 1 |
| Cost limit |
$61,000 (2025) |
| Includes |
EVs, plug-in hybrids |
Building CCA
Rental Property (Class 1)
| Input |
Value |
| Building cost |
$400,000 |
| Land (not depreciable) |
$200,000 |
| CCA rate |
4% |
| Year |
UCC |
CCA (4%) |
Half-Year? |
| 1 |
$400,000 |
$8,000 |
Yes |
| 2 |
$392,000 |
$15,680 |
No |
| 3 |
$376,320 |
$15,053 |
No |
| 4 |
$361,267 |
$14,451 |
No |
| 5 |
$346,816 |
$13,873 |
No |
CCA Recapture on Sale
| Scenario |
Tax Result |
| Sell above UCC |
Recapture (taxed as income) |
| Sell below UCC |
Terminal loss (deduction) |
| Sell above original cost |
Capital gain + recapture |
Example Recapture
| Item |
Amount |
| Original cost |
$400,000 |
| CCA claimed |
$50,000 |
| UCC |
$350,000 |
| Sold for |
$500,000 |
| Recapture |
$50,000 (taxable) |
| Capital gain |
$100,000 (50% taxable) |
Computer Equipment (Class 50)
Enhanced Rate
| Class |
Rate |
Equipment |
| Class 50 |
55% |
Computers after March 2011 |
Example
| Year |
UCC |
CCA |
Half-Year? |
| 1 |
$5,000 |
$1,375 |
Yes |
| 2 |
$3,625 |
$1,994 |
No |
| 3 |
$1,631 |
$897 |
No |
| 4 |
$734 |
$404 |
No |
Computer equipment essentially written off in ~4 years.
Office Furniture & Equipment (Class 8)
20% Rate
| Year |
UCC |
CCA |
| 1 |
$10,000 |
$1,000 (half-year) |
| 2 |
$9,000 |
$1,800 |
| 3 |
$7,200 |
$1,440 |
| 4 |
$5,760 |
$1,152 |
| 5 |
$4,608 |
$922 |
Accelerated Investment Incentive
| Rule |
Details |
| Eligible property |
Most CCA classes |
| Enhanced first year |
Up to 1.5× normal rate |
| DIEP limit |
$1.5 million per year |
| Applies |
CCPCs and unincorporated businesses |
Example Enhanced CCA
| Standard |
Enhanced |
| 30% × 50% = 15% |
Up to 45%+ in year 1 |
CCA for Rentals
Rules
| Rule |
Details |
| CCA cannot create loss |
Only reduces income to $0 |
| Separate class rule |
Each rental property separate (usually) |
| Recapture on sale |
CCA claimed is recaptured |
Should You Claim CCA?
| Scenario |
Recommendation |
| Property appreciating |
Maybe defer CCA |
| Plan to sell soon |
Avoid CCA (recapture) |
| High rental income |
Claim CCA |
| Low marginal rate now |
Defer to higher rate years |
| Never selling |
Claim CCA |
Multi-Asset Classes
Grouping Assets
| Rule |
Details |
| Same class |
Assets pooled together |
| Different classes |
Separate UCC pools |
| Disposition |
Reduces pool by proceeds |
| Addition |
Increases pool by cost |
Example Pool
| Action |
Class 8 UCC |
| Opening |
$20,000 |
| Purchase desk ($2,000) |
$22,000 |
| Sell chair ($500) |
$21,500 |
| CCA (20%) |
$4,300 |
| Closing UCC |
$17,200 |
CCA for Self-Employed
Common Claims
| Asset |
Class |
Rate |
| Vehicle |
10/10.1 |
30% |
| Computer |
50 |
55% |
| Office furniture |
8 |
20% |
| Software |
12 |
100% |
| Phone/tablet |
50 |
55% |
Home Office Building
| Rule |
Details |
| CCA on home |
Can claim business % |
| Risk |
May affect principal residence exemption |
| Alternative |
Claim expenses only (no CCA) |
Terminal Loss
When No Assets Remain
If you sell your last asset in a class for less than UCC:
| Scenario |
Result |
| UCC remaining |
$15,000 |
| Sold last asset for |
$10,000 |
| Terminal loss |
$5,000 (deductible) |
CCA Claim Decisions
When to Maximize CCA
| Situation |
Strategy |
| High income year |
Claim full CCA |
| Business profitable |
Reduce taxable income |
| Not selling soon |
Build deductions |
When to Defer CCA
| Situation |
Strategy |
| Low income year |
Save for later |
| Planning to sell |
Avoid recapture |
| Low marginal rate |
Wait for higher bracket |
Record Keeping
Required Documentation
| Document |
Purpose |
| Purchase receipts |
Original cost |
| Date acquired |
Half-year rule |
| CCA schedule |
Track UCC yearly |
| Disposition records |
Calculate recapture |
| Allocation (buildings) |
Land vs. building split |