Calculating CCA

The CCA you can claim depends on the type of property you own and the date you acquired it.

You group the depreciable property you own into classes. A specific rate of CCA generally applies to each class. We explain the most common classes of property in Classes of depreciable property. We list most of the classes and their rates in the chart CCA classes.

Base your CCA claim on your fiscal period ending in the current tax year and not the calendar year.

There are a few other things you should know about CCA, such as current or capital expense, declining balance method, and fiscal period. For more information, see Basic information about CCA.

To calculate your current tax year deduction for CCA, and any recaptured CCA and terminal losses, use Area A on page 4 of your Form T2125, Statement of Business or Professional Activities.

For the current tax year, you can get information to help you complete Area A from other areas of Form T2125 which you filed for the previous year.

You may have acquired or disposed of buildings or equipment during the fiscal period. If so, complete the applicable area B, C, D, or E before completing Area A.

You will find explanations on how to complete Area B and Area C in Column 3 - Cost of additions in the year. You will find explanations on how to complete Area D and Area E in Column 4 - Proceeds of dispositions in the year.

To calculate your CCA claim, you will need to know the meaning of:

• Available for use
• Capital cost
• Depreciable property
• Fair market value (FMV)
• Non-arm's length transaction
• Proceeds of disposition
• Undepreciated capital cost (UCC)

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2125, Statement of Business or Professional Activities

Related topics

• Area A - Calculation of capital cost allowance claim
• CCA classes
• Classes of depreciable property
• Basic information about CCA