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Questions and Answers
What does 1 represent in CCA classes?
What does 1 represent in CCA classes?
What does 6 represent in CCA classes?
What does 6 represent in CCA classes?
What does 8 represent in CCA classes?
What does 8 represent in CCA classes?
What types of vehicles are included in category 10?
What types of vehicles are included in category 10?
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Describe category 10-1 in CCA classes.
Describe category 10-1 in CCA classes.
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What does 12 represent in CCA classes?
What does 12 represent in CCA classes?
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Define leasehold improvements in CCA classes.
Define leasehold improvements in CCA classes.
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Study Notes
CCA Classes Overview
- Class 1: Applicable to buildings with a Capital Cost Allowance (CCA) rate of 4%.
- Class 6: Comprises residential and non-residential properties with a 10% CCA, including frame, log, stucco, and galvanized materials.
- Class 8: Covers furniture and fixtures with a 20% CCA, along with outdoor additions categorized as miscellaneous.
- Class 10: Includes automobiles, vans, trucks, and wagons under this classification.
Passenger Vehicles
- Class 10-1 specifically addresses passenger vehicles with a CCA base of 30,000.
- This class is separate from Class 10, ensuring no terminal loss occurs.
- Allows for 15% CCA in the year of disposal, calculated as half the regular CCA rate.
Tools and Equipment
- Class 12 consists of tools, instruments, kitchen utensils, and uniforms, all qualifying for a 100% CCA deduction.
Leasehold Improvements
- Leasehold improvements are treated under Class 13.
- CCA for leasehold improvements equals the lower of 1/5 of the capital cost or the capital cost divided by the number of 12-month periods from the start of the taxation year the cost was incurred to the end of the lease term, including the first renewal term.
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Description
This quiz covers various classes of Capital Cost Allowance (CCA) applicable to different types of properties, vehicles, and equipment. Learn about the specifics of Class 1, Class 6, Class 8, Class 10, and others, including their respective CCA rates and deductions. Test your knowledge on how these classifications impact financial accounting for businesses.
