EYs guide to capital cost allowance
Learn more about the capital cost allowance (CCA) and eligible capital expenditure rules that determine the income tax treatment and classification of capital assets and outlays.
This valuable publication includes commentary, illustrative examples, descriptions of various CCA classes, and cross-references to legislation, case law, and administrative materials, as well as CCA lookup tables. It also includes the “Natural Resources Canada Class 43.1 and 43.2 Technical Guide.”
current vs. capital expenditures
CCA – general rules
specific restrictions and special rules for lessees
CCA classes
eligible capital expenditures
Important changes introduced by the federal government propose to amend the federal tax rules to significantly accelerate capital cost allowance (CCA) for capital investments. A summary of those changes is included in the ebook.
The CCA and ECE rules are complex, and their application often involves questions of both law and fact. The difficulty in applying these rules is illustrated by the numerous administrative positions taken by the Canada Revenue Agency (CRA), as well as the substantial body of case law on the subject.