A taxation term, equivalent to depreciation, that allows the company to expense each year a portion of the original price of an asset as a recognition of the wearing away of such asset.
The system of amortization required by federal income tax law.
A tax deduction for the depreciation of various types of assets.
Is the declining-balance method for calculating depreciation or amortization of assets. The rates are set by class designations by Revenue Canada. It is a guideline only. You can claim less.
An amount allowed under the Income Tax Act to be deducted from the value of certain assets and treated as an expense in calculating the income of an individual or company for a taxation year.
A yearly deduction or depreciation on the cost of certain assets. You can claim CCA for tax purposes on the assets of a business such as buildings or equipment, as well as on additions or improvements, if these assets are expected to last for some years.
An amount (expressed as a percentage) allowed to be expensed for tax purposes against the cost of capital assets acquired by a business. Different types of assets attract different percentages. Using this CCA or passing it on to a leasing company in exchange for the ability to expense lease payments is one of the main determinants in deciding whether or not to lease.
Depreciation for the purposes of taxation in Canada it is deducted when determining taxable income.
A taxation term, equivalent to depreciation, that makes allowance for the wearing away of a fixed asset.
An amount allowed under the Income Tax Act to be deducted from the value of certain assets and treated as an expense in computing an individual's or company's income for a taxation year. It may differ from the amount charged for the period in depreciation accounting.
The amount of tax relief that Revenue Canada allows for depreciation. For example, for wear and tear on capital property. This would include an asset that has a useful but diminishing life over time, e.g., car, equipment, furniture, etc. Different assets have different amounts of annual depreciation, e.g., ranging from 4% to 100%.
Capital Cost Allowance (CCA) is effectively the means by which Canadians may claim depreciation expense. Depreciable items are deemed to belong to different classes which depreciate at different rates and are subject to different rules. For the most common classes the value of all assets belonging to that class are accumulated in a pool, and the designated percentage for that class may be claimed on the balance in that class at the end of the taxation year.
