Capital Cost Allowance Classes Overview
7 Questions
100 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

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?

    <p>Auto, van, trucks, wagons</p> Signup and view all the answers

    Describe category 10-1 in CCA classes.

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

    What does 12 represent in CCA classes?

    <p>100% - Tools, instruments, kitchen utensils, uniforms</p> Signup and view all the answers

    Define leasehold improvements in CCA classes.

    <p>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.</p> 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.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    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.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser