Definition
The tax deduction that spreads the cost of a rental building and its assets over several years, at a rate set for each class: 4% a year for most buildings.
The classes
| Class | Rate | Property |
|---|---|---|
| 1 | 4% | Most buildings acquired after 1987 |
| 3 | 5% | Most buildings acquired after 1978 and before 1988 |
| 6 | 10% | Some buildings acquired before 1979 (frame, log, stucco-on-frame, sheet metal) |
| 8 | 20% | Appliances and furniture rented with the unit |
| 17 | 8% | Parking areas and sidewalks |
Land isn't depreciable: split the price between land and building using the deed or the ratio on the municipal assessment roll. Each rental property whose building costs $50,000 or more goes in its own separate class.
Rules to know
- CCA is optional: you claim anything from zero up to the maximum, calculated on the class's undepreciated capital cost (UCC).
- In the year you buy, the half-year rule generally limits CCA to half of the net additions; it doesn't apply to property eligible for the Accelerated Investment Incentive.
- CCA can't create or increase a rental loss.
- When you sell, CCA already claimed may be recaptured and added to income.
Learn more
Glossary terms
Official sources
- CRA: How much capital cost allowance can you claim
- CRA: Classes of depreciable property (rental)
- Revenu Québec: Capital Cost Allowance Guide (TPW-130.G-V)
General information, not legal advice
This page summarizes the rules in force in Québec on the update date shown, for information only. It does not replace advice from a lawyer, notary or accountant, nor the official texts: when in doubt, rely on the sources above and on the Tribunal administratif du logement.