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Classes of Depreciable Assets

CCA – Classes of Assets to apply capital cost allowance.

CLASSES OF DEPRECIABLE PROPERTY – Quick Guide

The following are some of the more common types of depreciable properties. You will find a complete list in Schedule II of the Income Tax Regulations.

Note:
Land is not depreciable property (but some enhancements to land can be). Therefore, when you acquire property, only include the cost that relates to the building.

Class number: 1
Description: Most buildings made of brick, stone, or cement acquired after 1987, including their component parts such as electric wiring, lighting fixtures, plumbing, heating and cooling equipment, elevators, and escalators
CCA rate: 4%

Class number: 3
Description: Most buildings made of brick, stone, or cement acquired before 1988, including their component parts as listed in class 1 above
CCA rate: 5%

Class number: 6
Description: Buildings made of frame, log, stucco on frame, galvanized iron, or corrugated metal that are used in the business of farming or fishing, or that have no footings below-ground; fences and most greenhouses
CCA rate: 10%

Class number: 7
Description: Canoes, boats, and most other vessels, including their furniture, fittings, or equipment
CCA rate: 15%

Class number: 8
Description: Property that is not included in any other class such as furniture, calculators and cash registers (that do not record multiple sales taxes), photocopy and fax machines, printers, display fixtures, refrigeration equipment, machinery, tools costing $200 or more, and outdoor advertising billboards and greenhouses with rigid frames and plastic covers acquired after 1987
CCA rate: 20%

Class number: 9
Description: Aircraft, including furniture, fittings, or equipment attached, and their spare parts
CCA rate: 25%

Class number: 10
Description: Automobiles (except taxis and others used for lease or rent), vans, wagons, trucks, buses, tractors, trailers, drive-in theatres, general-purpose electronic data-processing equipment (e.g., personal computers) and systems software, and timber cutting and removing equipment
CCA rate: 30%

Class number: 10.1
Description: Passenger vehicles costing more than $30,000 if acquired after 2000 ($27,000 if acquired in 2000; $26,000 if acquired after 1997 and before 2000; $25,000 if acquired in 1997; $24,000 if acquired after August 31, 1989, and before 1997; and $20,000 if acquired before September 1989)
CCA rate: 30%

Class number: 12
Description: Chinaware, cutlery, linen, uniforms, dies, jigs, moulds or lasts, computer software (except systems software), cutting or shaping parts of a machine, certain property used for earning rental income such as apparel or costumes, and videotape cassettes; certain property costing less than $200 such as kitchen utensils, tools, and medical or dental equipment; certain property acquired after August 8, 1989, and before 1993 for use in a business of selling or providing services such as electronic bar-code scanners, and cash registers used to record multiple sales taxes
CCA rate: 100%

Class number: 13
Description: Property that is leasehold interest (the maximum CCA rate depends on the type of the leasehold and the terms of the lease)
CCA rate: N/A

Class number: 14
Description: Patents, franchises, concessions, and licences for a limited period – the CCA is limited to whichever is less:
1. the capital cost of the property spread out over the life of the property; or
2. the undepreciated capital cost of the property at the end of the taxation year
Class 14 also includes patents, and licences to use patents for a limited period, that you elect not to include in class 44
CCA rate: N/A

Class number: 16
Description: Automobiles for lease or rent, taxicabs, and coin-operated video games or pinball machines; certain tractors and large trucks acquired after December 6, 1991, that are used to haul freight and that weigh more than 11,788 kilograms
CCA rate: 40%

Class number: 17
Description: Roads, sidewalks, parking-lot or storage areas, telephone, telegraph, or non-electronic data communication switching equipment
CCA rate: 8%

Class number: 38
Description: Most power-operated movable equipment acquired after 1987 used for moving, excavating, placing, or compacting earth, rock, concrete, or asphalt
CCA rate: 30%

Class number: 39
Description: Machinery and equipment acquired after 1987 that is used in Canada primarily to manufacture and process goods for sale or lease
CCA rate: 25%

Class number: 43
Description: Manufacturing and processing machinery and equipment acquired after February 25, 1992, described in class 39 above
CCA rate: 30%

Class number: 44
Description: Patents and licences to use patents for a limited or unlimited period that the corporation acquired after April 26, 1993. However, you can elect not to include such property in class 44 by attaching a letter to the return for the year the corporation acquired the property. In the letter, indicate the property you do not want to include in class 44
CCA rate: 25%

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