Amount of capital cost allowance (CCA) you can you claim

The amount of capital cost allowance (CCA) you can claim depends on the type of property you own and the date you acquired it. Group the depreciable property you own into classes. A specific rate of CCA generally applies to each class.

The CRA explains the most common classes of depreciable rental property and the rates that apply to each class under Rental – classes of depreciable properties.

For the most part, use the declining balance method to calculate your CCA, as it is the most common one. This means that you apply the CCA rate to the capital cost of the depreciable property. Over the life of the property, the rate is applied against the remaining balance. The remaining balance declines each year that you claim CCA.


Last year, Abeer bought a rental building for $60,000. On her income tax and benefit return for last year, she claimed CCA of $1,200 on the building. This year, she bases her CCA claim on the remaining balance of $58,800 ($60,000 − $1,200).

You do not have to claim the maximum amount of CCA in any given year. You can claim any amount you like, from zero to the maximum allowed for the year. If you do not have to pay income tax for the year, you may not want to claim CCA. Claiming CCA reduces the balance of the class by the amount of CCA claimed. As a result, the amount of CCA available for you to claim in future years will be reduced.


If you are a partner in a partnership, the amount of CCA you can claim has already been determined by the partnership. If you receive a Slip T5013, Statement of Partnership Income, your CCA amount is already included in box 110. If you are a partner in a partnership that does not need to issue this slip, the total partnership CCA will be shown on the financial statements you receive.

Limits on CCA

In the year you acquire rental property, you can usually claim CCA only on one-half of your net additions to a class. This is the half-year rule (also known as the 50% rule) which the CRA explains under Column 15 – Adjustment for current year additions subject to the half year rule. The available-for-use rules may also affect the amount of CCA you can claim.

In the year you dispose of rental property, you may have to add an amount to your income as a recaptured capital cost allowance or deduct an amount from your income as a terminal loss terminal loss. The CRA explains recapture and terminal loss under Column 7 – UCC after additions and dispositions.

If you own more than one rental property, you have to calculate your overall net income or loss for the year from all your rental properties before you can claim CCA. If you are a partner, include the net rental income or loss from your T5013 slip in the calculation. Combine the rental incomes and losses from all your properties, even if they belong to different classes. This also applies to furniture, fixtures, and appliances that you use in your rental building. You can claim CCA for these properties, the building, or both.

You cannot use CCA to create or increase a rental loss. Do not apply the half year rule to accelerated investment incentive properties or zero emission vehicles.


Salvador owns three rental properties. Two of these properties are Class 1 buildings and one is a Class 3 building. All the buildings contain Class 8 appliances. Salvador's net rental income from these properties is as follows:

  • Building 1 (Class 1), net rental income of $1,500
  • Building 2 (Class 1), net rental income of $2,000
  • Building 3 (Class 3), net rental loss of $4,000

Salvador has an overall net loss of $500 ($1,500 + $2,000 - $4,000). Since he is not allowed to increase his rental loss by claiming CCA, he cannot claim any CCA on his rental buildings or appliances.

For more information about loss restrictions on rental and leasing properties, go to Interpretation Bulletin IT-195R4, Rental Property – Capital Cost Allowance Restrictions, and Interpretation Bulletin IT-443, Leasing Property – Capital Cost Allowance Restrictions, and its Special Release.

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