Part A – Classes 8, 10, 54 and 55 property

Column 2 – Undepreciated capital cost at the start of the year

If you claimed CCA in any previous year, record in this column the undepreciated capital cost (UCC) of the property at the end of last year. If you completed Part A of Form T777 in 2022, you would have recorded this amount in column 13. However, if you received a GST/HST rebate for a vehicle or musical instrument in 2023, you have to reduce your opening UCC by the amount of the rebate.

Column 3 – Cost of additions in the year

If you acquired depreciable property in 2023, enter the total capital cost of the property on the appropriate line.

If you owned property for personal use and then started using it for employment in 2023, there is a change in use. In most cases when this happens, the amount you will enter in column 3 is the fair market value of the property at the time you start using the property for employment.

For example, John bought a car in 2018 for $19,000. In 2023, he started using it for employment. By checking car dealerships and the newspapers, John determines its fair market value is $11,000. Therefore, he enters $11,000 in column 3.

To determine what class your passenger vehicle belongs to, use the price of the car before you add GST and any PST, or HST. Once you have determined in which class your vehicle belongs to, add the GST and PST, or HST that you paid to the vehicle’s capital cost.

For example, in 2023, you bought a passenger vehicle for $32,000 plus HST of $4,160. Your vehicle belongs in Class 10 even though its capital cost is $36,160 ($32,000 + $4,160), since your cost before the HST was $32,000. You would enter $36,160 in column 3 for Class 10 property.

For information on Class 10.1 property, see Part B – Class 10.1.

Column 4 – Cost of additions which are accelerated investment incentive properties (AIIP) or zero-emission vehicles (ZEV)

Enter in column 4 the cost of additions that are AIIP or ZEV from Class 54 or 55. These properties must be acquired and available for use after November 20, 2018 for AIIP and acquired after March 18, 2019 for ZEV. This cost is a part of the total cost of additions in column 3 and cannot be higher than the number in column 3.

If no ZEV property is acquired after March 18, 2019 and no AIIP is acquired after November 20, 2018, enter “0” in this column.

To be eligible for the accelerated investment incentive, or the enhanced CCA deduction for ZEVs, the property must become available for use in the year.

Column 5 – Proceeds of disposition in the year

For depreciable property you disposed of in 2023, enter the lesser of:


The proceeds of disposition of a zero-emission passenger vehicle that has been included in Class 54 and that is subject to the $61,000 capital cost limit will be adjusted based on a factor equal to the capital cost limit of $61,000 as a proportion of the actual cost of the vehicle.

For dispositions after July 29, 2019, the actual cost of the vehicle also will be adjusted for any payments or repayments of government assistance that you may have received or repaid for the vehicle.

Column 6 – Undepreciated capital cost after additions and dispositions

Enter the amount you get after you add column 2 to column 3 and subtract column 5.

You cannot claim CCA when the amount in column 6 is one of the following:

Recapture of capital cost allowance – If the amount in column 6 is negative, you have a recapture of CCA. Include the amount as income on line 10400 of your income tax and benefit return for 2023.

Terminal loss – If the amount in column 6 is positive and you no longer own any property in that class, you have a terminal loss. You cannot deduct the terminal loss from employment income.

Column 7 – Proceeds of dispositions available to reduce additions of AIIP or ZEV

This column calculates the adjustments under certain circumstances to the additions for the year where there is also a disposition in the year.

In case of AIIP, if the UCC of a class increases in a year by an investment in both AIIP and non-AIIP, and an amount (for example, a disposition) reduces the UCC of the class, you must first reduce the cost of non-AIIP additions before reducing the cost of AIIP additions.

To determine which portion of your proceeds of dispositions, if any, will reduce the cost of your AIIP or ZEV additions, take proceeds of disposition in column 5 minus the cost of additions in the year in column 3 plus the cost of additions for AIIP properties in column 4. If the result is negative enter “0.”

If no AIIP or ZEV were acquired, you do not need to use this column.

Column 8 – UCC adjustment for current-year additions of AIIP and ZEV

This column calculates the enhanced UCC amount used to determine the additional CCA for AIIP or ZEV.

For this column, reduce the cost of AIIP or ZEV additions in column 4 by proceeds of disposition available to reduce the AIIP or ZEV additions as calculated in column 7. Multiply the result by the following factor:

These factors will change for properties that become available for use after 2023 and the incentive is completely phased out for properties available for use after 2027.

If no AIIP or no ZEV were acquired, enter 0 in this column.

Column 9 – Adjustments for current-year additions

You can only claim CCA on 50% of your net additions (additions minus dispositions) of Class 8 or Class 10 properties in 2023. This is known as the 50% rule. The 50% rule does not apply to AIIP or ZEV. Calculate the net first year additions that are subject to the 50% rule by entering 50% of the amount you get when you subtract column 5 and column 4 from column 3. If the result is negative, enter “0” in column 9.

Column 10 – Base amount for capital cost allowance

Enter the amount you get when you subtract column 9 from column 6 plus column 8. Base your CCA claim, if any, on the amount in this column. You can only claim CCA on the balance remaining in column 10 when the amount is positive and you still have property in the class at the end of the year.

Column 12 – Capital cost allowance for the year

You can only claim CCA if you were still using the property for employment at the end of 2023. If you started using a property for employment part way through the year, you can claim CCA on the property for the full year. You do not have to limit your CCA claim to the part of the year you used the property for employment, the 50% rule is there for that. If you stopped using the property for employment during the year and there is no property left in the class, you cannot claim any CCA on the property for the year.

Enter the CCA you want to claim for 2023. The most you can claim for a Class 10 property is 30% of the amount in column 10. The most you can claim for a Class 8 property is 20% of the amount in column 10.

Column 13 – Undepreciated capital cost at the end of the year

Enter the amount you get when you subtract column 12 from column 6. This is your undepreciated capital cost at the end of 2023.

Completing your tax return

Calculate your CCA claim using the back of Form T777, Statement of Employment Expenses and enter the amount on the applicable line on the front of the form.

Enter the amount you can deduct from the Total expenses line (9368) of Form T777 on line 22900 of your return.

Forms and publications

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