CCA Classes
Class 1 – Buildings acquired after 1987. 10% for non-residential buildings
used for manufacturing acquired after March 18, 2017. 6% for all other nonresidential buildings
Class 8 (20%) – Equipment and machinery not included in another class.
Furniture, appliances, outdoor signs, photocopiers, and facsimile machines.
Class 10 (30%) – Automotive equipment and passenger vehicles
Class 10.1 (30%) – Passenger vehicle that has a cost greater than the
prescribed amount (currently $30,000)
Class 12 (100%) – Small tools and kitchen utensils costing less than $500,
uniforms, tableware, linens, computer software other than systems software,
and videotapes
Class 13 – Improvements made to leased premises. CCA is calculated on a
straight-line basis by apportioning the cost over the lease period remaining
plus one renewal period (minimum 5 years; maximum 40)
Present Value of Tax Savings Arising from CCA
(
𝑪𝒅𝑻
𝟏 + 𝟏. 𝟓𝒓
)∗(
)
𝒅+𝒓
𝟏+𝒓
The Aggregating Formula
3(a) – Employment income, business income, property income, other items
of income. Subtotal 1 positive or zero.
3(b) – Taxable capital gains, taxable net gain from listed personal property
exceed, less: allowable capital losses. Subtotal 2
3(c) – Other deductions
3(d) – Less: Employment losses, business losses, property losses, allowable
business investment losses.
Net Income
Division C deductions – (a) Stock option deduction, (b) Social assistance,
workers’ compensation, and amounts expected by treaty, (c) Loss carryovers from other years, (d) Capital gains deduction.
Taxable Income
Employment Income – The formula for arriving at net income from
employment. Employment income = (A+B+C) – D.
A – the salary, wages, commissions, gratuities, and other forms of
renumeration received.
B – the sum of benefits received or enjoyed
C – the sum of the allowances received
D – deductions that are specifically permitted as exceptions to the general
rule