How to complete the capital cost allowance (CCA) charts

To calculate your current tax year deduction for CCA, and any recaptured CCA and terminal losses, use Area A on any of the following forms:

• T776, Statement of Real Estate Rentals
• T2042, Statement of Farming Activities
• T2121, Statement of Fishing Activities
• T2125, Statement of Business or Professional Activities
• T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses

Include only the business or rental property part.

If you want to claim CCA under the immediate expensing rules and you are part of an associated group of eligible persons or partnerships (EPOPs), fill in Area G before completing Area A to calculate the immediate expensing limit allocated to you.

You may have acquired or disposed of buildings or equipment during your fiscal period. If so, fill in the Area B, Area C, Area D or Area E, whichever applies, before completing Area A.

On this page...

• Column 1 – Class number
• Column 2 – Undepreciated capital cost (UCC) at the start of the year
• Column 3 – Cost of additions in the year
• Column 4 – Cost of additions from column 3 that are DIEPs
• Column 5 – Proceeds of dispositions in the year
• Column 6 – Proceeds of dispositions of DIEP
• Column 7 – UCC after additions and dispositions
• Column 8 – UCC of DIEP
• Column 9 – Immediate expensing amount for DIEPs
• Column 10 – Cost of remaining additions after immediate expensing
• Column 11 – Cost of remaining additions from column 10 that are AIIPs or ZEVs
• Column 12 – Remaining UCC after immediate expensing
• Column 13 – Proceeds of dispositions available to reduce additions of AIIPs and ZEVs
• Column 14 – UCC adjustment for current-year additions of AIIPs and ZEVs
• Column 15 – Adjustment for current-year additions subject to the half-year rule
• Column 16 – Base amount for CCA
• Column 17 – CCA rate (%)
• Column 18 – CCA for the year
• Column 19 – UCC at the end of the year

Column 1 – Class number

Enter in this column the class numbers of your properties. If this is the first year you are claiming CCA, go to Classes of depreciable property to determine the classes to which your property belongs. If you own rental property, go to Rental – classes of depreciable property.

If you claimed CCA last year, you can get the class numbers of your properties from last year's form.

Separate classes

Generally, if you own several properties in the same CCA class, combine the capital cost of all these properties into one class. Then, enter the total in Area A of your form.

Column 2 – Undepreciated capital cost (UCC) at the start of the year

If this is the first year you are claiming CCA, skip this column. Otherwise, enter in this column the undepreciated capital cost (UCC) for each class at the end of last year. You can find these amounts in 2022 completed form calculation table in column 19.

From your UCC at the start of 2023, subtract any investment tax credit (ITC) you claimed or were refunded in 2022. Also, subtract any 2022 ITC you carried back to a year before 2022.

In 2022, you may have received a GST/HST input tax credit for a passenger vehicle you used less than 90% of the time for your business. In this case, subtract the amount of the credit you got from your 2023 opening UCC.

Column 3 – Cost of additions in the year

If you acquire or make improvements to depreciable property in the year, we consider them to be additions to the class in which the property belongs. You should:

• fill in Areas B and C on your form, if applicable
• for each class, enter in column 3 of Area A's calculation table the amounts from column 5 for each class in Areas B and C

For the exceptions to this rule, go to Class 3 (5%) and Class 6 (10%).

Do not include the value of your own labour in the cost of a property you build or improve. Include the cost of surveying or valuing a property you acquire. A property usually has to be available for use in the year before you can claim CCA.

To find out if any special considerations apply in your case, go to Changing from personal to rental use, Grants, subsidies, and other incentives or inducements and Non-arm's length transactions.

Column 4 – Cost of additions from column 3 that are DIEPs

For each class, enter in column 4 the amount that you designate as immediate expensing property from the total cost included in column 3. The cost of designated immediate expensing properties (DIEPs) is included in column 3 in the total cost of additions in the year and shown separately in column 4. If you are part of an associated group of eligible persons or partnerships, fill in Area G of your form.

Remember that property has to be available for use in the year before you can claim CCA.

Column 5 – Proceeds of dispositions in the year

Enter the details of your 2023 dispositions on your form, as explained below.

If you disposed of depreciable property during your current tax year, you should:

• complete, for each class, Areas D and E, if applicable
• enter in column 5 of the calculation table in Area A the amounts for each class from column 5 of Areas D and E

When completing the tables in Areas D and E, enter in column 3 whichever amount is the lesser of either:

• your proceeds of disposition minus any related expenses
• the capital cost of your property

Your proceeds of disposition could include compensation you receive for property that has been destroyed, expropriated, or stolen. Special rules may apply if you dispose of a building for less than both its undepreciated capital cost and your capital cost. If this is the case, go to Disposing of a building.

If you sell a property for more than its cost, you may have a capital gain. You may be able to postpone or defer the capital gain or recapture of CCA in your income.

Column 6 – Proceeds of dispositions of DIEP

Enter in column 6 the total proceeds of disposition from column 5 of any designated immediate expensing property that was acquired in the year.

Proceeds of dispositions of DIEP are included in column 5 in the total proceeds of dispositions in the year and shown separately in column 6.

Column 7 – UCC after additions and dispositions

The UCC amount for column 7 is the initial UCC amount at the start of the year in column 2 plus the cost of additions in column 3 minus the proceeds of dispositions in column 5.

You cannot claim capital cost allowance when the amount in column 7 is:

• negative (see Recapture of CCA)
• positive and you do not have any property left in that class at the end of your 2023 fiscal period (see Terminal loss)

In either case, enter "0" in column 19.

Column 8 – UCC of DIEP

Enter in column 8 the cost of DIEP additions from column 4 minus the proceeds of dispositions of DIEP from column 6. If the result of column 4 minus column 6 exceeds the amount from column 7, enter in column 8 the amount from column 7. If the amount from column 7 is negative, enter "0."

Since immediate expensing is only available for DIEP that becomes available in the year, there can be no UCC of DIEP from the previous year.

Column 9 – Immediate expensing amount for DIEPs

Enter the immediate expensing amount you choose to apply to each class.

The total immediate expensing amount must be equal to or less than the least of the following amounts:

• $1.5 million, if you are not associated with any other EPOP in the year
• the UCC of the DIEP before any CCA deductions in the year
• the amount of income, if any, before any CCA deductions, earned from the source of income that is a property or business for which the relevant DIEP is used for the tax year

Column 10 – Cost of remaining additions after immediate expensing

Column 10 represents the cost of additions after applying the immediate expensing deduction to DIEP. It includes the cost of properties that are not immediate expensing property, are immediate expensing property not designated, or are DIEPs that exceed the immediate expensing deduction for the fiscal period for each class.

To calculate this amount, subtract the immediate expensing amount in column 9 from the total cost of additions in column 3.

Column 11 – Cost of remaining additions from column 10 that are AIIPs or ZEVs

For each class, enter from column 10 the total cost of properties that are accelerated investment incentive properties (AIIPs) or properties included in Classes 54 to 56 that you acquired during the year. They are included in column 10 and shown separately in column 11.

An AIIP generally means a property, other than zero-emission vehicles and automotive equipment included in Classes 54 to 56, acquired after November 20, 2018, and that becomes available for use before 2028.

If you did not acquire any AIIPs, ZEVs or Class 56 properties, enter "0" in this column.

Column 12 – Remaining UCC after immediate expensing

Column 12 represents the remaining portion of UCC after applying the immediate expensing deduction. The remaining portion of UCC will be used to calculate the regular CCA deduction.

Subtract the amount in column 9 from the amount in column 7 and enter the difference.

Column 13 – Proceeds of dispositions available to reduce additions of AIIPs and ZEVs

This column calculates the adjustments under certain circumstances to the additions for the year where there is also a disposition in the year.

You must determine which amount of your proceeds of disposition is available to reduce your AIIP, ZEV and Class 56 property additions.

If no AIIP is acquired after November 20, 2018, no ZEV is acquired after March 18, 2019, and no Class 56 property is acquired after March 1, 2020, you do not need to use this column.

If the UCC of a class increases in a year by an investment in both AIIP and non-AIIP, and an amount (for example, a disposition) reduces the UCC of the class, you must first reduce the cost of non-AIIP additions before reducing the cost of AIIP additions.

To determine which part of your proceeds of dispositions, if any, will reduce the cost of your AIIP, ZEV or Class 56 additions, take the proceeds of disposition in column 5 minus the cost of remaining additions in the year in column 10 plus the cost of remaining additions of AIIPs, ZEVs or Class 56 properties in column 11. If the result is negative, enter "0."

For more information on the accelerated investment incentive, go to Accelerated investment incentive.

Column 14 – UCC adjustment for current-year additions of AIIPs and ZEVs

This column calculates the enhanced UCC amount used to determine the additional CCA for AIIPs, ZEVs or Class 56 properties.

For this column, reduce the cost of AIIP, ZEV or Class 56 property additions in column 11 by the proceeds of disposition available to reduce the AIIP, ZEV or Class 56 property additions as calculated in column 13. Multiply the result by the following factor:

• 1 for Classes 43.2 and 53
• 1 1/2 for Class 55
• 2 1/3 for Classes 43.1, 54 and 56
• 0 for property in Classes 12, 13, 14 and 15, as well as properties that are Canadian vessels included in paragraph 1100(1)(v) of the Income Tax Regulations
• 1/2 for the remaining AIIPs

These factors will change for properties that become available for use after 2023 and the incentive is completely phased out for properties that become available for use after 2027.

If you did not acquire any AIIPs, ZEVs or Class 56 properties, enter "0" in this column.

For more information about AIIPs and the incentive's application, go to Application and phase-out.

Column 15 – Adjustment for current-year additions subject to the half-year rule

In the year you acquire or make additions to a property, you can usually claim CCA on half of your net additions. We call this limit the half-year rule.

Calculate your CCA claim only on the net adjusted amount. For example, if before November 20, 2018, you acquired a property for $30,000, you would base your CCA claim on $15,000 ($30,000 × 50%) in the year you acquired the property.

The half-year rule does not apply to AIIPs, ZEVs or Class 56 properties.

Calculate the net first-year additions that are subject to the half-year rule by taking the cost of remaining additions in column 10 minus AIIP, ZEV and Class 56 additions in column 11 minus proceeds of dispositions in column 5. Enter 50% of the result in column 15. If the result is negative, enter "0."

In some cases, the half-year rule does not apply. For example, in a non-arm's length transaction, you may buy depreciable property that the seller continuously owned from the day that is at least 364 days before the end of your 2023 fiscal period to the day the property was acquired. However, if you transfer personal property, such as a car or a personal computer, into your business, the half-year rule applies to the particular property transferred.

Also, some properties are not subject to the half-year rule. Some examples are those in Classes 13, 14, 23, 24, 27, 34 and 52 as well as most of those in Class 12, such as small tools.

The half-year rule does not apply when the available for use rule denies a CCA claim until the second year after you acquired a property.

Column 16 – Base amount for CCA

This is the amount in column 12 plus the amount in column 14 minus the amount in column 15. The CCA rate is applied to this amount.

For a Class 10.1 vehicle you disposed of in your 2023 fiscal period, you may be able to claim 50% of the CCA that would be allowed if you still owned the vehicle at the end of your 2023 fiscal period. This is known as the half-year rule on sale.

You can use the half-year rule on sale if, at the end of your 2022 fiscal period, you owned the Class 10.1 vehicle you disposed of in 2023. If this applies to you, enter 50% of the amount from column 2 (for Class 10.1 vehicles) in column 16.

Column 17 – CCA rate (%)

Enter the prescribed CCA rate (percentage) for each property class you have listed in column 1.

Column 18 – CCA for the year

In column 18, enter the CCA you want to deduct for the current year. You can claim the CCA for the year up to the maximum amount allowed.

In Area A, you calculate the maximum amount for column 18 by multiplying the amount in column 16 by the amount in column 17, then adding the amount in column 9.

In your first year of rental activities, you may have to prorate your CCA claim.

Enter the total CCA being claimed on line 9936 of your form. If you are a co-owner, enter only your share of the CCA.

Column 19 – UCC at the end of the year

This is the undepreciated capital cost at the end of the current tax year. This is the result of the UCC after additions and dispositions in column 7, minus the amount for CCA claimed for the year in column 18.

This will be the amount you enter in column 2 when you calculate your CCA claim next year.

If you have a terminal loss or a recapture of CCA, enter "0" in column 19.

Forms and publications

• Guide T4036, Rental Income
• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income

Related links

• Line 9947 – Recaptured capital cost allowance
• Line 9948 – Terminal loss