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Commonly used capital cost allowance classes, their descriptions and rates.
To calculate capital cost allowance (CCA) on your depreciable properties, use the form that applies to your business: Form T2125, Statement of Business or Professional Activities. Form T2042, Statement of Farming Activities. Form T2121, Statement of Fishing Activities.
Class 10. The maximum CCA rate for this class is 30%. You include motor vehicles and some passenger vehicles in Class 10. Motor vehicles and passenger vehicles are defined in What kind of vehicle do you own?. Your passenger vehicle can belong to either Class 10 or Class 10.1.
Different types of assets are allocated to different CCA classes, and each class has its own rate for capital cost allowance. For instance, most automobiles would be class 10, which is expensed at 30% per year on a declining balance basis.
A capital cost allowance (CCA) lets you recoup costs from business assets that have lost value. CCA rates are separated into classes, which range in rates from 4% to 55%. These assets cannot be deducted all at once; thus, undepreciated capital cost (UCC) is carried forward each year.
Common classes include Class 8 for furniture and equipment (20% rate), Class 10 for vehicles (30% rate), and Class 50 for computer hardware (55% rate). Consult the CRA’s resources or a tax professional to ensure correct classification.
How do I determine if my new vehicle is a Class 10 or Class 10.1 asset and what are the tax implications? Facts: Any vehicle with a purchase cost of over $30,000 can be classed as a luxury vehicle (a 10.1 asset).
Use the explanation below this calculator to determine the CRA class of your capital asset. Then use the calculator to calculate the maximum allowable capital depreciation for that asset. Only use as much of your capital cost allowance (CCA) as is reducing your payable tax.
This can be done by claiming a Canada Revenue Agency (CRA) -regulated deduction called capital cost allowance (CCA). Let’s take the example of someone entering the taxi industry this year. They buy a car that they plan to use for a few years. It costs, before tax, $20,000.
Class 10 (30%): Motor vehicles and computer hardware. This class includes general-purpose electronic data processing equipment (or computer hardware) and systems software for that equipment, as long as they were acquired before March 23, 2004 or after March 22, 2004 and before 2005.