ACC 742 Lecture Notes - Lecture 3: Capital Cost Allowance, Fax, Intangible Asset
20 Apr 2016
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Capital cost allowance (cca) and cumulative eligible capital amount (ceca) Cca/ceca tax depreciation an allowable deduction for using an asset to generate revenue over a long period of time. Cca class has its own cca rate (see reg. Cca generally follows the declining balance method. Year rule in first year asset is acquired if class additions exceed disposals. No year rule for certain class 12 items (small tools, kitchen utensils and linens), class 14, and class 52. Cca is prorated for short taxation years. Buildings or other structures, including component parts such as plumbing, air- conditioning/heating equipment, and elevators and escalators acquired after. New manufacturing buildings used at least 90% for m&p purposes, acquired on or after mar 19/07 (separate class for each building) Non-residential buildings, acquired on or after march 19/07; each building is put into a separate class. Buildings as above (ordinary class 1), acquired before 1988.
