Capital Cost Allowance Classes Overview

Questions and Answers

What does 1 represent in CCA classes?

100% - Tools, instruments, kitchen utensils, uniforms

4% - Buildings (correct)

10% - Frame, log, stucco, galvanized inputs

20% - Mis:, furniture, fixtures, outdoor adds

What does 6 represent in CCA classes?

20% - Mis:, furniture, fixtures, outdoor adds

4% - Buildings

Passenger vehicle

10% - Frame, log, stucco, galvanized inputs (correct)

What does 8 represent in CCA classes?

20% - Mis:, furniture, fixtures, outdoor adds (correct)

10% - Frame, log, stucco, galvanized inputs

100% - Tools, instruments, kitchen utensils, uniforms

4% - Buildings

What types of vehicles are included in category 10?

Auto, van, trucks, wagons Signup and view all the answers

Describe category 10-1 in CCA classes.

Passenger vehicle with a limit of 30,000 and 15% CCA in the year, assuming last asset in class with no terminal loss. Signup and view all the answers

What does 12 represent in CCA classes?

100% - Tools, instruments, kitchen utensils, uniforms Signup and view all the answers

Define leasehold improvements in CCA classes.

CAA is equal to 1/5 of capital cost of the leasehold interest or capital cost of the leasehold interest divided by the number of 12-month periods. Signup and view all the answers

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.

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.