Accounting glossary
What is Capital cost allowance (CCA)?
Canada's tax version of depreciation. Assets belong to CRA classes, each with a maximum yearly rate (Class 8 at 20%, Class 10 at 30%, Class 50 at 55%…), usually with only half the rate allowed in the first year — the half-year rule.
Example
You buy $10,000 of Class 8 equipment (20% rate) in year one. The half-year rule restricts the first-year claim to half the normal amount, so you claim $1,000 rather than $2,000, leaving $9,000 of undepreciated capital cost.
Year two claims 20% of $9,000, or $1,800, leaving $7,200 — and so on, declining each year.
In SeroBooks
SeroBooks records CCA with the half-year rule applied and posts it to the ledger. CCA calculator →