Capital cost allowance, year by year
A declining balance: each year’s CCA is the rate times what is left to claim, so the deduction shrinks as the years go on.
- Tax saving
- Rest of the deduction
| Year | Opening balance | CCA | Closing balance | Tax saving |
|---|---|---|---|---|
| Year 1 | $120,000 | $18,000 | $102,000 | $4,860 |
| Year 2 | $102,000 | $30,600 | $71,400 | $8,262 |
| Year 3 | $71,400 | $21,420 | $49,980 | $5,783 |
| Year 4 | $49,980 | $14,994 | $34,986 | $4,048 |
| Year 5 | $34,986 | $10,496 | $24,490 | $2,834 |
| Total | $95,510 | $24,490 | $25,788 |
The table fills in with your figures.
From the CRA
CCA classes for trucks and trailers
The classes and rates the Canada Revenue Agency lists. Enter the rate that applies to your unit in the calculator above.
Which class your unit belongs to depends on the unit and how you use it. Classes and rates can change, so your accountant has the final word.
CRA classes and rates
| Trucks | Class 10 · 30% |
|---|---|
| Freight trucks rated above 11,788 kg | Class 16 · 40% |
| Tractors | Class 10 · 30% |
| Trailers | Class 10 · 30% |
| Zero-emission vehicles that would otherwise be in Class 10 | Class 54 · 30% |
| Zero-emission vehicles that would otherwise be in Class 16 | Class 55 · 40% |
Method
How CCA is worked out
A declining balance: each year’s claim is a share of what is left to claim.
Starting balance
The cost of the unit, less any extra first-year deduction your accountant confirms.
Half-year rule
Canada’s general first-year rule: half the rate in the first year. Switch it off if it doesn’t apply.
Each year
The rate times what is left to claim, so the claim shrinks.
Tax saving
Each year’s claim times your tax rate: an estimate of the tax it could save.
FAQ
Questions about CCA
Which CCA class is my truck in?
The CRA lists trucks, tractors and trailers in Class 10 at 30%, and freight trucks rated above 11,788 kg in Class 16 at 40% (the table above). Which one fits your unit depends on the unit and how you use it, so ask your accountant.
What about immediate expensing?
If your accountant confirms a first-year incentive, enter it as the extra first-year deduction.
Is this tax advice?
No. It is illustrative only. Confirm with your accountant before you rely on it.