Glossary
Capital cost allowance class
A capital cost allowance class is the CRA category that fixes the rate at which a depreciable asset can be written off for tax. Every depreciable asset a Canadian business buys falls into a numbered class, and the class sets the annual rate and the method. Buildings, vehicles, computers and equipment each sit in different classes, so two purchases of the same value can produce very different deductions. Putting an asset in the wrong class is one of the more common and more expensive filing errors.
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