Claiming capital cost allowance (CCA)
You might acquire a depreciable property such as a building, furniture, or equipment to use in your business or professional activities.
You cannot deduct the full cost of depreciable property when you calculate your net business or professional income for the year in which you acquired the property.
Instead, since these properties wear out or become obsolete over time, you can deduct their cost over a period of several years. This yearly deduction is called a capital cost allowance (CCA).
The CRA provides detailed information for situations where you or your business have been impacted by a disaster. For more information, including what qualifies as a disaster, go to Disasters and disaster relief.
- How to calculate the deduction for Capital Cost Allowance (CCA)
How much and how to calculate CCA
- Basic information about CCA
Current or capital expenses, declining balance method, fiscal period less than 365 days
- Classes of depreciable property
The most common classes of depreciable properties and the rates that apply to each class
- Personal use of property
Property used for both business and personal use, changing from personal to business use
- Grants, subsidies, and any other incentives or inducements
How to calculate the capital cost of property when receiving a grant, subsidy, or other incentives
- Non-arm's length transaction
Special rules to follow to determine the property's cost
- Capital Gains
What you need to know if you sold property
- Disposing of a building in the year
Special rules may apply
- Replacement property
Cases where you can postpone or defer adding a capital gain or recapture of CCA to your income
Forms and publications
- Guide T4002, Business and Professional Income
- Form T2125, Statement of Business or Professional Activities
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