CCA: Asset classes

Question 1

Class 1

Answer 1

Rate: 4%
Assets: Buildings acquired after 1987.
Special Rule: AccII for manufacturing or processing buildings (10%), and other non-residential (6%).

Question 2

Class 3

Answer 2

Rate: 5%
Assets: Buildings acquired before 1988.
Special Rule: Additions after 1987 must not exceed $500,000 or 25% of capital cost.

Question 3

Class 6

Answer 3

Rate: 10%
Assets: Buildings made of frame, log, or stucco.
Special Rule: Applies to certain non-residential buildings in remote areas.

Question 4

Class 8

Answer 4

Rate: 20%
Assets: Various machinery, equipment, and furniture.
Special Rule: Half-year rule applies unless elected.

Question 5

Class 10

Answer 5

Rate: 30%
Assets: Motor vehicles and passenger vehicles (excluding Class 10.1).
Special Rule: If acquired after November 20, 2018, apply AccII.

Question 6

Class 10.1

Answer 6

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.

Question 7

Class 12

Answer 7

Rate: 100%
Assets: Small tools under $500, kitchen utensils, and medical instruments.
Special Rule: Half-year rule exemption for small assets.

Question 8

Class 13

Answer 8

Rate: Varies
Assets: Leasehold improvements.
Special Rule: Deduct the lesser of improvements over the lease’s life.

Question 9

Class 14.1

Answer 9

Rate: 5%
Assets: Intangible assets (goodwill, franchises with unlimited lives).
Special Rule: Properties acquired before 2017 enjoy 7% CCA until 2027.

Question 10

Class 29

Answer 10

Rate: 50%
Assets: Manufacturing and processing equipment.
Special Rule: Straight-line method for equipment acquired after March 18, 2007, before 2016.

Question 11

Class 43

Answer 11

Rate: 30%
Assets: Eligible machinery and equipment used for manufacturing and processing.

Question 12

Class 44

Answer 12

Rate: 25%
Assets: Patents.
Special Rule: Option to include in Class 14.

Question 13

Class 50

Answer 13

Rate: 55%
Assets: Computer hardware and systems software acquired after January 31, 2011.

Question 15

Class 54

Answer 15

Rate: 100%
Assets: Zero-emission vehicles that would otherwise be Class 10 or 10.1.
Special Rule: Full write-off in the acquisition year.

Question 16

Class 55

Answer 16

Rate: 100%
Assets: Zero-emission vehicles for taxis or daily rentals (Class 16 vehicles).

Question 17

Half-Year Rule

Answer 17

Explanation: Only 50% of the CCA claimable in the first year for most assets acquired before November 21, 2018.

Question 18

Accelerated Investment Incentive (AccII)

Answer 18

Explanation: For assets acquired after November 21, 2018. First-year CCA at 150% for eligible classes, replacing the half-year rule.

Question 19

Terminal Loss

Answer 19

Explanation: Deducted if UCC exceeds proceeds from all disposed assets in a class.

Question 20

Recapture

Answer 20

Explanation: Occurs if proceeds exceed UCC, which is included in income.

Question 21

Class 14 - Limited Life Intangibles
Rate: Straight-line

Answer 21

Assets: Patents, trademarks with a limited life.
Special Rule: AccII applies for assets acquired after November 21, 2018.

Question 22

Class 1 - Manufacturing Buildings

Answer 22

Rate: 10%
Assets: Buildings used in manufacturing and processing.

Question 23

Class 16

Answer 23

Rate: 40%
Assets: Taxis, and vehicles used in daily rentals.

Question 24

Immediate Expensing

Answer 24

Explanation: Starting in 2021, up to $1.5 million of eligible property can be immediately expensed.

Question 25

Class 44

Answer 25

Leasehold Improvements
Rate: Straight-line
Assets: Leasehold improvements.
Special Rule: Deduct over the lease’s term or 40 years, whichever is shorter.

Question 26

Class 1 - Post-2024

Answer 26

Rate: 6%
Assets: Buildings acquired after 2024.
Special Rule: AccII adds 50% to the CCA base, resulting in a 75% first-year deduction.

Question 27

Class 53 - Post-2024

Answer 27

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.

Question 28

Class 8 - Post-2024

Answer 28

Rate: 20%
Assets: Furniture and equipment.
Special Rule: AccII does not apply; standard CCA rules.

Question 29

Class 10 - Post-2024

Answer 29

Rate: 30%
Assets: Vehicles such as delivery vans.
Special Rule: AccII does not apply to Class 10, normal rules apply.

Question 30

Class 13 - Leasehold Improvements (2024)

Answer 30

Rate: Straight-line
Assets: Leasehold improvements made in 2024 and after.
Special Rule: AccII applies; allows for faster depreciation in the year of acquisition.

Question 31

Class 10.1 - Luxury Cars (2024)

Answer 31

Rate: 30%
Assets: Luxury cars.
Special Rule: No terminal loss or recapture, with a 15% first-year deduction in the year of disposition.

Question 32

Class 50 - Post-2024

Answer 32

Rate: 55%
Assets: Computer hardware and systems software.
Special Rule: AccII does not apply; use standard CCA.

Question 33

Class 12 - Exempt from AccII

Answer 33

Rate: 100%
Assets: Tools and equipment under $500.
Special Rule: Exempt from the half-year rule and AccII.