Classes of depreciable properties

Depreciable properties are usually grouped into classes. To claim CCA, you should know about the following classes.

Class 8
The maximum CCA rate for this class is 20%. Musical instruments are included in Class 8.

Class 10
The maximum CCA rate for this class is 30%.

You include motor vehicles and some passenger vehicles in Class 10. We define motor vehicles and passenger vehicles on the Vehicle definitions chart.

Your passenger vehicle can belong to either Class 10 or Class 10.1. You only include a passenger vehicle in Class 10.1 if it meets certain conditions. We explain these conditions below.

Class 10.1
The maximum CCA rate for this class is 30%.

The maximum capital cost of each vehicle that may be included in Class 10.1 is $30,000 plus GST and provincial sales tax (PST), or HST.

Include your passenger vehicle in Class 10.1 if it meets one of the following conditions:

  • You acquired it after August 31, 1989, and before January 1, 1997, and it cost you more than $24,000.
  • You acquired it after December 31, 1996, and before January 1, 1998, and it cost you more than $25,000.
  • You acquired it after December 31, 1997, and before January 1, 2000, and it cost you more than $26,000.
  • You acquired it after December 31, 1999, and before January 1, 2001, and it cost you more than $27,000.
  • You acquired it after December 31, 2000, and it cost you more than $30,000.

If your passenger vehicle does not meet any of these conditions, then it belongs in Class 10.

To determine what class your passenger vehicle belongs to, do not include the GST and PST, or HST, when calculating the cost of the vehicle.

The following compares the two CCA classes (Class 10 and Class 10.1) for vehicles:

Comparison of class 10 and class 10.1 vehicles based on a number of criteria or topics
Topics Class 10 Class 10.1
CCA rate 30% 30%
Group all vehicles in one class yes no
List each vehicle separately no yes
Maximum capital cost no yes
50% rule on acquisitions yes yes
Half year rule on sale no yes
Recapture on sale or trade-in yes no
Terminal loss on sale or trade-in no no

Because of the differences between Class 10 and Class 10.1, the capital cost allowance schedule on the back of Form T777, Statement of Employment Expenses, is divided into two separate parts (Part A and Part B).

Use Part A to calculate CCA for both Class 8 and Class 10 property, since the rules for these two classes are similar.

Use Part B to calculate CCA on Class 10.1 property only. List each vehicle that belongs in Class 10.1 on a separate line. Calculate CCA separately for each vehicle listed.

For a detailed explanation on how to complete Part A or Part B, see How to calculate CCA.

Completing your tax return

Calculate your CCA claim using the back of Form T777, Statement of Employment Expenses and enter the amount on the applicable line on the front of the form.

Enter the amount you can deduct from the Total expenses line (9368) of Form T777 on line 229 of your return.

Forms and publications

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