How to complete the capital cost allowance (CCA) charts

To calculate your current tax year deduction for CCA, and any recaptured CCA and terminal losses, use Area A on any of the following forms:

• T776, Statement of Real Estate Rentals
• T2042, Statement of Farming Activities
• T2121, Statement of Fishing Activities
• T2125, Statement of Business or Professional Activities
• T1175, Farming – Calculation of Capital Cost Allowance (CCA) and Business-use-of-home Expenses

Include only the business or rental property part.

If you want to claim CCA under the immediate expensing rules and you are part of an associated group of eligible persons or partnerships (EPOPs), fill in Area G before filling in Area A to calculate the immediate expensing limit allocated to you.

You may have acquired or disposed of buildings or equipment during your fiscal period. If so, fill in the Area B, Area C, Area D or Area E, whichever applies, before filling in Area A.

On this page...

• Column 1 – Class number
• Column 2 – Undepreciated capital cost (UCC) at the start of the year
• Column 3 – Cost of additions in the year
• Column 4 – Cost of additions from column 3 that are DIEPs
• Column 5 – Proceeds of dispositions in the year
• Column 6 – Proceeds of dispositions of DIEP
• Column 7 – UCC after additions and dispositions
• Column 8 – UCC of DIEP
• Column 9 – Immediate expensing amount for DIEPs
• Column 10 – Cost of remaining additions after immediate expensing
• Column 11 – Cost of remaining additions from column 10 that are AIIPs or ZEVs acquired before 2025
• Column 12 – Cost of remaining additions from column 10 that are RIIPs or ZEVs acquired after 2024
• Column 13 – Remaining UCC after immediate expensing
• Column 14 – Proceeds of dispositions available to reduce additions of AIIPs, RIIPs and ZEVs
• Column 15 – UCC adjustment for current-year additions of AIIPs and ZEVs aquired before 2025
• Column 16 – Proceeds of dispositions available to reduce additions of RIIPs and ZEVs acquired after 2024
• Column 17 – UCC adjustment for current year additions of RIIPs and ZEVs acquired after 2024
• Column 18 – Adjustment for current-year additions subject to the half-year rule
• Column 19 – Base amount for CCA
• Column 20 – CCA rate (%)
• Column 21 – Available CCA for the year
• Column 22 – Non-compliant amount of CCA
• Column 23 – CCA claim for the year
• Column 24 – UCC at the end of the year

Column 1 – Class number

Enter in this column the class numbers of your properties. If this is the first year you are claiming CCA, go to Classes of depreciable property to determine the classes to which your property belongs. If you own rental property, go to Rental – classes of depreciable property.

If you claimed CCA last year, you can get the class numbers of your properties from last year's form.

Separate classes

Generally, if you own several properties in the same CCA class, combine the capital cost of all these properties into one class. Then enter the total of the combined properties that are represented under one class in Area A's calculation table.

Column 2 – Undepreciated capital cost (UCC) at the start of the year

If this is the first year you are claiming CCA, skip this column. Otherwise, enter in this column the undepreciated capital cost (UCC) for each class at the end of last year. Enter these amounts from column 21 from your 2024 form. 

From your UCC at the start of 2025, subtract any investment tax credit (ITC) you claimed or were refunded in 2024. Also, subtract any 2024 ITC you carried back to a year before 2024.

In 2024, you may have received a GST/HST input tax credit for a passenger vehicle you used less than 90% of the time for your rental operation. In this case, subtract the amount of the credit you got from your 2025 opening UCC.

Column 3 – Cost of additions in the year

If you acquire or make improvements to depreciable property in the year, we consider them to be additions to the class in which the rental property belongs. You should:

• fill in Areas B and C on your form, if applicable
• for each class, enter in column 3 of Area A's calculation table the amounts from column 5 for each class in Areas B and C

For the exceptions to this rule, go to Class 3 (5%) and Class 6 (10%).

Do not include the value of your own labour in the cost of a rental property you build or improve. Include the cost of surveying or valuing a rental property you acquire. Remember that a rental property usually has to be available for use in the year before you can claim CCA.

To find out if any special considerations apply in your case, go to Changing from personal to rental use, Grants, subsidies, and other incentives or inducements and Non-arm's length transactions.

Column 4 – Cost of additions from column 3 that are DIEPs

For each class, enter in column 4 the amount that you designate as immediate expensing property from the total cost included in column 3. The cost of designated immediate expensing properties (DIEPs) is included in column 3 in the total cost of additions in the year and shown separately in column 4. If you are part of an associated group of eligible persons or partnerships, fill in Area G of your form.

Remember that property has to be available for use in the year before you can claim CCA.

Column 5 – Proceeds of dispositions in the year

Enter the details of your 2025 dispositions on your form, as explained below.

If you disposed of depreciable property in the current tax year, you should:

• fill in, for each class, Areas D and E, if applicable
• enter in column 5 of the calculation table in Area A the amounts for each class from column 5 of Areas D and E

When filling in the tables in Areas D and E, enter in column 3 of the table the lesser of:

• your proceeds of disposition minus any related expenses
• the capital cost of the rental property

Your proceeds of disposition could include compensation you receive for property that has been destroyed, expropriated, or stolen. Special rules may apply if you dispose of a building for less than both its undepreciated capital cost and your capital cost. If this is the case, go to Disposing of a building.

If you sell a property for more than its cost, you may have a capital gain. You may be able to postpone or defer the capital gain or recapture of CCA in your income.

Column 6 – Proceeds of dispositions of DIEP

Enter in column 6 the total proceeds of disposition from column 5 of any designated immediate expensing property that was acquired in the year.

Proceeds of dispositions of DIEP are included in column 5 in the total proceeds of dispositions in the year and shown separately in column 6.

Column 7 – UCC after additions and dispositions

The UCC amount for column 7 is the initial UCC amount at the start of the year in column 2 plus the cost of additions in column 3 minus the proceeds of dispositions in column 5.

You cannot claim capital cost allowance when the amount in column 7 is:

• negative (see Recapture of CCA)
• positive and you do not have any property left in that class at the end of your 2025 fiscal period (see Terminal loss)

In either case, enter "0" in column 24.

Column 8 – UCC of DIEP

Enter in column 8 the cost of DIEP additions from column 4 minus the proceeds of dispositions of DIEP from column 6. If the result of column 4 minus column 6 exceeds the amount from column 7, enter in column 8 the amount from column 7. If the amount from column 7 is negative, enter "0."

Since immediate expensing is only available for DIEP that becomes available in the year, there can be no UCC of DIEP from the previous year.

Column 9 – Immediate expensing amount for DIEPs

Enter the immediate expensing amount you choose to apply to each class.

The total immediate expensing amount must be equal to or less than the least of the following amounts:

• $1.5 million, if you are not associated with any other EPOP in the year
• the UCC of the DIEP before any CCA deductions in the year
• the amount of income, if any, before any CCA deductions, earned from the source of income that is a property for which the relevant DIEP is used for the tax year

Column 10 – Cost of remaining additions after immediate expensing

Column 10 represents the cost of additions after applying the immediate expensing deduction to DIEP. It includes the cost of properties that are not immediate expensing property, are immediate expensing property not designated, or are DIEPs that exceed the immediate expensing deduction for the fiscal period for each class.

To calculate this amount, subtract the immediate expensing amount in column 9 from the total cost of additions in column 3.

Column 11 – Cost of remaining additions from column 10 that are AIIPs or ZEVs acquired before 2025

For each class, enter from column 10 the total cost of properties that are accelerated investment incentive properties (AIIPs) or properties included in Classes 54 to 56 that you acquired before 2025 and that became available for use during the year. They are included in column 10 and shown separately in column 11.

An AIIP generally means a property, other than zero-emission vehicles and automotive equipment included in Classes 54 to 56, acquired after November 20, 2018, and that becomes available for use before 2028.

Under proposed changes, to be an AIIP, a property has to be acquired before 2025.

If you did not acquire any AIIPs, ZEVs or Class 56 properties, enter "0" in this column.

Column 12 – Cost of remaining additions from column 10 that are RIIPs or ZEVs acquired after 2024

Under proposed changes, for each class, enter from column 10 the total cost of properties that are reaccelerated investment incentive properties (RIIPs) or properties included in Classes 54 to 56 that you acquired after 2024 and that became available for use in 2025. They are included in column 10 and shown separately in column 12.

Column 13 – Remaining UCC after immediate expensing

Column 13 represents the remaining portion of UCC after applying the immediate expensing deduction. The remaining portion of UCC will be used to calculate the regular CCA deduction.

Subtract the amount in column 9 from the amount in column 7 and enter the difference.

Column 14 – Proceeds of dispositions available to reduce additions of AIIPs, RIIPs and ZEVs

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

When an AIIP and a property that is neither an AIIP nor, under proposed changes, a RIIP of the same class are purchased during the year and a disposition occurs, the disposition first reduces the UCC of the property that is neither an AIIP nor, under proposed changes, a RIIP before reducing the UCC of the AIIP.

Under proposed changes, when a RIIP and a property that is neither a RIIP nor an AIIP of the same class are purchased during the year and a disposition occurs, the disposition also reduces the UCC of the property that is neither a RIIP nor an AIIP before reducing the UCC of the RIIP.

Column 15 – UCC adjustment for current-year additions of AIIPs and ZEVs acquired before 2025

This column calculates the enhanced UCC amount used to determine the additional CCA for AIIPs, ZEVs or Class 56 properties acquired before 2025.

For this column, reduce the cost of AIIP, ZEV, or Class 56 additions in column 11 by the proceeds of disposition available to reduce the AIIP, ZEV, Class 56, or, under proposed changes, RIIP additions as calculated in column 14. Multiply the result by the following factor:

• 1/2 for Classes 43.2, and 53
• 7/8 for Class 55
• 1 1/2 for Classes 43.1, 54, and 56
• 0 for the remaining AIIPs

These factors will change for properties that become available for use after 2025 and the incentive is completely phased out for properties that become available for use after 2027.  For more information on the accelerated investment incentive, go to Accelerated investment incentive.

Under proposed changes, if property included in Class 44, 46, or 50 is acquired and becomes available for use after April 15, 2024, the following factors apply:

• 2 1/3 for Class 46
• 3 for Class 44
• 9/11 for Class 50

These factors will change for Class 44, 46, or 50 properties that become available for use after 2026.

If you did not acquire any AIIPs, ZEVs or Class 56 properties, enter "0" in this column.

For more information about AIIPs and the incentive's application, go to Application and phase-out.

Column 16 – Proceeds of dispositions available to reduce additions of RIIPs and ZEVs acquired after 2024

Under proposed changes, this column calculates the adjustments under certain circumstances to the additions of RIIPs and ZEVs acquired after 2024 for the purposes of calculating CCA for the year where there is also a disposition in the year.

Under an administrative position, the Canada Revenue Agency (CRA) allows the proceeds of disposition that reduce AIIP, RIIP, and ZEV additions from column 14 to reduce the additions of AIIPs and ZEVs acquired before 2025 first, with any remaining amount reducing the additions of RIIPs and ZEVs acquired after 2024.

To determine which part of your proceeds of dispositions, if any, will reduce your RIIP, ZEV, or Class 56 additions acquired after 2024, subtract the cost of remaining additions that are AIIPs or ZEVs acquired before 2025 in column 11 from the proceeds of disposition available to reduce additions of AIIPs, RIIPs, and ZEVs in column 14. If the result is negative, enter "0."

If you did not acquire any RIIPs, ZEVs, or Class 56 properties, you do not need to use this column.

Column 17 – UCC adjustment for current-year additions of RIIPs and ZEVs acquired after 2024

Under proposed changes, this column calculates the enhanced UCC amount used to determine the additional CCA for RIIPs, ZEVs, and Class 56 properties acquired after 2024.

• 3 for Class 44
• 2 1/3 for Classes 43.1, 46, 54, and 56
• 1 1/2 for Class 55
• 1 for Class 53
• 9/11 for Class 50
• 0 for Classes 12, 13, 14, 15, and 59, as well as properties that are Canadian vessels included in paragraph 1100(1)(v) of the Income Tax Regulations
• 1/2 for the remaining RIIPs

Column 18 – Adjustment for current-year additions subject to the half-year rule

Generally, in the year you acquire or make additions to a property, you can usually claim CCA on half of your net additions. We call this the half-year rule.

Calculate your CCA only on the net adjusted amount. For example, if before November 20, 2018, you acquired a property for $30,000, you would base your CCA claim on $15,000 ($30,000 × 50%) in the year you acquired the property.

The half-year rule does not apply to AIIPs, ZEVs, Class 56 properties, or, under proposed changes, RIIPs.

Calculate the net first-year additions that are subject to the half-year rule by taking the cost of remaining additions in column 10 minus AIIP, ZEV and Class 56, acquired before 2025 additions in column 11 minus, under proposed changes, RIIP, ZEV, and Class 56 acquired after 2024 additions in column 12 minus proceeds of dispositions in column 5. Enter 50% of the result in column 18. If the result is negative, enter "0."

In some cases, the half-year rule does not apply. For example, in a non-arm's length transaction, you may buy depreciable property that the seller continuously owned from the day that is at least 364 days before the end of your 2025 fiscal period to the day the property was acquired. However, if you transfer personal property, such as a car or a personal computer, into your rental operation, the half-year rule applies to the particular property transferred.

Also, some properties are not subject to the half-year rule. Some examples are those in Classes 13, 14, 23, 24, 27, 34 and 52 as well as most of those in Class 12, such as small tools.

The half-year rule does not apply when the available for use rule denies a CCA claim until the second  tax year after you acquire the property.

Column 19 – Base amount for CCA

This is the amount in column 13 plus the amount in column 15 plus, under proposed changes, the amount in column 17 minus the amount in column 18. The CCA rate is applied to this amount.

For a Class 10.1 vehicle you disposed of in your 2025 fiscal period, you may be able to claim 50% of the CCA that would be allowed if you still owned the vehicle at the end of your 2025 fiscal period. This is known as the half-year rule on sale.

You can use the half-year rule on sale if, at the end of your 2024 fiscal period, you owned the Class 10.1 vehicle you disposed of in 2025. If this applies to you, enter 50% of the amount from column 2 (for Class 10.1 vehicles) in column 19.

Column 20 – CCA rate (%)

Enter the prescribed CCA rate (percentage) for each property class you have listed in column 1.

Column 21 – Available CCA for the year

In column 21, enter the available CCA for 2025. This is the CCA amount that you can claim if you did not use your depreciable properties to earn income from a non-compliant short-term rental.

In Area A, calculate the maximum amount for column 21 by multiplying the amount in column 19 by the amount in column 20, then adding the amount in column 9.

Column 22 – Non-compliant amount of CCA

If you used depreciable properties for which you are claiming CCA to earn income from a short-term rental, you should:

• fill in, for each class, Chart B, if applicable
• enter in column 22 of Area A the amounts for each class from column 7 of Chart B

Chart B – Non-compliant amount of CCA for short-term rentals

List the details of all the properties you used for your short-term rentals. Group the properties in the applicable classes. Then, divide the UCC of the properties of each class between each short-term rental for which you used the properties and put the amount of each class for each short-term rental on a separate row. Each row should therefore include the costs of properties of only one class and only one short-term rental.

Column 23 – CCA claim for the year

In column 23, enter the CCA you want to deduct for 2025. You can claim the CCA for the year up to the maximum amount allowed. Calculate the maximum amount for column 23 by subtracting the non-compliant amount in column 22 from the available CCA in column 21.

In your first year of rental activities, you may have to prorate your CCA claim.

To get your CCA yearly total, add up all amounts in column 23. Enter this result on line 9936, "Total CCA claim for the year." If you are a co-owner, enter only your share of the CCA. To find out how to calculate your CCA claim if you are using the property for both rental and personal use, see Personal use of property in Guide T4002.

Column 24 – UCC at the end of the year

This is the undepreciated capital cost at the end of the current tax year. This is the result of the UCC after additions and dispositions in column 7, minus the amount for CCA claimed for the year in column 23.

This will be the amount you enter in column 2 when you calculate your CCA claim next year.

If you have a terminal loss or a recapture of CCA, enter "0" in column 24.

Forms and publications

• Guide T4036, Rental Income
• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income

Related links

• Line 9947 – Recaptured capital cost allowance
• Line 9948 – Terminal loss