CCA classes

Question 1

Class 1

Answer 1

Building acquired after 1987 (4%): for buildings acquired after 2007 who are 90% used for non-residential purpose can have CCA of 6% and if 90% is used for manufacturing&production then 10% can be deducted.

Question 2

Class 3

Answer 2

buildings acquired prior to 1988 (5%)

Question 3

Class 8

Answer 3

Furniture, fixtures and machinery

Question 4

Class 10

Answer 4

Automobiles (less than 30,000$) (30%)

Question 5

Class 10.1

Answer 5

Passenger luxury automobiles (worth more than 30,000)

Question 6

Class 12

Answer 6

Tools, linen, cutlery, chinaware, app software and uniforms (100%)

Question 7

13

Answer 7

Leasehold improvements (straight line method)

Question 8

14

Answer 8

Intangibles of limited life (straight line and pro rated with days)

Question 9

29
43
53

Answer 9

Manufacturing equipment acquired between March 18 2007-2016 (50% + SL)
Manufacturing equipment acquired before March 19 2007 (30%)
Manufacturing equipment acquired after 2016 (50%)
**if not used in manufacturing then should be in class 8 for 20%

Question 10

44

Answer 10

Patents (if 3 years or less: election to put it as part of class 14 if not its 25%)

Question 11

50

Answer 11

Computer hardware and system software, iphones, smrtphones (55%)

Question 12

What needs a separate class

Answer 12

Buildings with a value of 50,000$ or more, luxury cars, photocopier and telephone and fax machine if worth more than 1000$ (election for class 8) and buildings with 6% and 10% rates

Question 13

formula for CCA

Answer 13

Opening balance UCC + acquisitions - dispositions (lesser of costs and POD) - 1/2 year rule = amount to deduct CCA as % + 1/2 year rule = closing UCC balance

Question 14

Recapture is when

Answer 14

you have deducted too much or have made a profit on the disposition of an asset in a class which led the class to have a negative balance at the end of the period. You must add back the amount to your income so that the class goes back to 0.

Question 15

Terminal loss is when

Answer 15

you sold the last item in a class, but still have a balance, which means you didnt deduct enough and your asset was worth less than you thought, therefore it is deducted from your income.

Question 16

Half year rule

Answer 16

In the first year of acquisitions you will deduct 50% of the total amount acquired in that period before deducting CCA

Question 17

Exceptions to half year rule

Answer 17

Class 14 and 3 items of class 12: tools, chinaware and uniforms

Question 18

Class 13 improvements how calculated CCA

Answer 18

the lesser of cost of improvements/5 and cost of improvements/ lease term + 1st renewal option