CCA: Asset classes Flashcards
Class 1
Rate: 4%
Assets: Buildings acquired after 1987.
Special Rule: AccII for manufacturing or processing buildings (10%), and other non-residential (6%).
Class 3
Rate: 5%
Assets: Buildings acquired before 1988.
Special Rule: Additions after 1987 must not exceed $500,000 or 25% of capital cost.
Class 6
Rate: 10%
Assets: Buildings made of frame, log, or stucco.
Special Rule: Applies to certain non-residential buildings in remote areas.
Class 8
Rate: 20%
Assets: Various machinery, equipment, and furniture.
Special Rule: Half-year rule applies unless elected.
Class 10
Rate: 30%
Assets: Motor vehicles and passenger vehicles (excluding Class 10.1).
Special Rule: If acquired after November 20, 2018, apply AccII.
Class 10.1
Rate: 30%
Assets: Luxury cars over the prescribed cost.
Special Rule: CCA limited to 15% in the year of disposition; no terminal loss or recapture.
Class 12
Rate: 100%
Assets: Small tools under $500, kitchen utensils, and medical instruments.
Special Rule: Half-year rule exemption for small assets.
Class 13
Rate: Varies
Assets: Leasehold improvements.
Special Rule: Deduct the lesser of improvements over the lease’s life.
Class 14.1
Rate: 5%
Assets: Intangible assets (goodwill, franchises with unlimited lives).
Special Rule: Properties acquired before 2017 enjoy 7% CCA until 2027.
Class 29
Rate: 50%
Assets: Manufacturing and processing equipment.
Special Rule: Straight-line method for equipment acquired after March 18, 2007, before 2016.
Class 43
Rate: 30%
Assets: Eligible machinery and equipment used for manufacturing and processing.
Class 44
Rate: 25%
Assets: Patents.
Special Rule: Option to include in Class 14.
Class 50
Rate: 55%
Assets: Computer hardware and systems software acquired after January 31, 2011.
Class 54
Rate: 100%
Assets: Zero-emission vehicles that would otherwise be Class 10 or 10.1.
Special Rule: Full write-off in the acquisition year.
Class 55
Rate: 100%
Assets: Zero-emission vehicles for taxis or daily rentals (Class 16 vehicles).
Half-Year Rule
Explanation: Only 50% of the CCA claimable in the first year for most assets acquired before November 21, 2018.
Accelerated Investment Incentive (AccII)
Explanation: For assets acquired after November 21, 2018. First-year CCA at 150% for eligible classes, replacing the half-year rule.
Terminal Loss
Explanation: Deducted if UCC exceeds proceeds from all disposed assets in a class.
Recapture
Explanation: Occurs if proceeds exceed UCC, which is included in income.
Class 14 - Limited Life Intangibles
Rate: Straight-line
Assets: Patents, trademarks with a limited life.
Special Rule: AccII applies for assets acquired after November 21, 2018.
Class 1 - Manufacturing Buildings
Rate: 10%
Assets: Buildings used in manufacturing and processing.
Class 16
Rate: 40%
Assets: Taxis, and vehicles used in daily rentals.
Immediate Expensing
Explanation: Starting in 2021, up to $1.5 million of eligible property can be immediately expensed.
Class 44
Leasehold Improvements
Rate: Straight-line
Assets: Leasehold improvements.
Special Rule: Deduct over the lease’s term or 40 years, whichever is shorter.
Class 1 - Post-2024
Rate: 6%
Assets: Buildings acquired after 2024.
Special Rule: AccII adds 50% to the CCA base, resulting in a 75% first-year deduction.
Class 53 - Post-2024
Rate: 50%
Assets: Manufacturing and processing equipment.
Special Rule: AccII adds 50% to the CCA base, resulting in a 75% deduction in the first year.
Class 8 - Post-2024
Rate: 20%
Assets: Furniture and equipment.
Special Rule: AccII does not apply; standard CCA rules.
Class 10 - Post-2024
Rate: 30%
Assets: Vehicles such as delivery vans.
Special Rule: AccII does not apply to Class 10, normal rules apply.
Class 13 - Leasehold Improvements (2024)
Rate: Straight-line
Assets: Leasehold improvements made in 2024 and after.
Special Rule: AccII applies; allows for faster depreciation in the year of acquisition.
Class 10.1 - Luxury Cars (2024)
Rate: 30%
Assets: Luxury cars.
Special Rule: No terminal loss or recapture, with a 15% first-year deduction in the year of disposition.
Class 50 - Post-2024
Rate: 55%
Assets: Computer hardware and systems software.
Special Rule: AccII does not apply; use standard CCA.
Class 12 - Exempt from AccII
Rate: 100%
Assets: Tools and equipment under $500.
Special Rule: Exempt from the half-year rule and AccII.
