Personal use of property

If you buy property for both business and personal use, you can calculate the business use of the property.


Jennifer owns a business. She bought a car in 2022 that she uses for both personal and business use. The car cost $20,000, including all charges and taxes. Therefore, she includes the car in Class 10. Her business use this year was 12,000 kilometres of the total 18,000 kilometres driven. She calculates her CCA on the car for 2022 as follows:

  1. Cost of additions = $20,000
  2. CCA rate for Class 10 = 30%
  3. Adjustment for current year additions is $20,000 divided by 2 = $10,000
  4. Base amount for CCA = $10,000
  5. Base amount for CCA $10,000 multiplied by 30% = $3,000
  6. Capital cost amount for the year = $3,000

Since Jennifer used her car partly for personal use, she calculates her CCA for business use as follows:

12,000 (business kilometres) ÷ 18,000 (total kilometres) × $3,000 = $2,000

Jennifer enters $2,000 on line 9936.


The capital cost limits on a Class 10.1 vehicle (a passenger vehicle) still apply when you split the capital cost between business and personal use.

Changing from personal to business use

If you bought a property for personal use and started using it in your business in your current tax year, there is a change in use. You need to determine the capital cost for business purposes at the moment of this change in use.

When you start using your property for business use, you are considered to have disposed of it. If the FMV of the property is more than its cost, you may have a capital gain unless you file an election.

Capital Cost Calculation – Change in use

Actual cost of the property

$ Blank space for dollar value

FMV of the property

$ Blank space for dollar value

Amount on line 1

$ Blank space for dollar value

Line 2 minus line 3 (if negative, enter "0")

$ Blank space for dollar value

Enter all capital gains deduction claimed for the amount on line 4Footnote 1

$ Blank space for dollar value
× 2 =
$ Blank space for dollar value

Line 4 minus line 5 (if negative, enter "0")

$ Blank space for dollar value
× 1/2 =
$ Blank space for dollar value

Capital cost: line 1 plus line 6

$ Blank space for dollar value

Enter the capital cost of the property from line 7 in column 3 of Area B or C of your form.


The Canada Revenue Agency considers you to acquire the land for an amount equal to its FMV when you change its use.

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