CCA lets you write off equipment, vehicles, and technology over time. Know which class your assets belong to and how to maximize your first-year deduction.
Know exactly what belongs on Line 9936 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to capital cost allowance (cca).
In the year you acquire an asset, you can generally only claim half the normal CCA rate. This applies to most CCA classes and reduces your first-year deduction.
Regulation 1100(2)The Accelerated Investment Incentive Property (AIIP) rule provides a 1.5x first-year CCA enhancement for eligible property acquired after November 20, 2018. This effectively replaces the half-year rule with a more generous first-year deduction.
Section 1100(0.1)Vehicles costing over $38,000 each go into their own separate Class 10.1. You cannot claim a terminal loss when disposing of a Class 10.1 vehicle, and each vehicle is treated as its own class.
Claiming CCA on your principal residence can trigger a capital gains liability when you sell. Most tax advisors recommend NOT claiming CCA on your home office to avoid this issue.
See how different professionals use Line 9936 deductions in practice.
Purchased a MacBook Pro for software development and client work.
$2,899
~$1,594 first-year (Class 50 at 55%)
Invested in a professional camera body and multiple lenses for client photography work.
$5,400
~$1,080 first-year (Class 8 at 20%)
Purchased a heavy-duty work truck for hauling materials and traveling to job sites.
$45,000 (capped at $38,000 base for CCA)
Class 10.1 at 30% on $38,000 base
These errors on Line 9936 can trigger a CRA review — here's how to get it right.
Not claiming CCA on computers and equipment
Many self-employed individuals forget to claim CCA on computers, cameras, and other equipment. These assets have dedicated CCA classes with generous depreciation rates (e.g., Class 50 at 55% for computers).
Claiming CCA on principal residence (creates capital gains liability on sale)
While you CAN claim CCA on the business-use portion of your home, doing so may create a capital gains liability when you sell. Most tax advisors recommend claiming other home office expenses but NOT CCA on the home itself.
Putting tools in wrong class (under $500 = Class 12, over $500 = Class 8)
Tools costing under $500 go in Class 12 (100% write-off). Tools costing $500 or more go in Class 8 (20% declining balance). Furniture is always Class 8 regardless of cost.
These categories are often mixed up with Capital Cost Allowance (CCA). Here's the difference.
Small items (pens, paper, toner) are current expenses on Line 8810. Larger items with a useful life beyond one year (desks, computers, printers) are capital assets claimed via CCA on Line 9936.
Repairs that restore an asset to its original condition are current expenses on Line 8960. Improvements that extend the asset's life or enhance its value are capital expenditures claimed via CCA.
See how ScanForTax processes a typical cca expense.
Apple Store
2025-06-20
Ontario
ScanForTax identifies this Apple Store purchase as a capital asset and flags it for CCA treatment. The MacBook goes into Class 50 (55% rate). The $415.74 HST is fully recoverable via ITC. AppleCare+ could be expensed separately as a current expense.
Profession-specific guides that frequently use CCA deductions.
See how tax recovery works for cca expenses in each province.
Start scanning now — your first 15 scans are free, no credit card required.
$250,000+ in receipts already processed by Canadian businesses
