IT Regulations 1100 See also Part XI Schedule II Classes 1-52 Schedule III Class 13 Schedule IV Class 15 Schedule V Industry Mineral Mines Schedule VI Timber Limits and Cutting Rights Schedule II Capital Cost Allowance Classes CCA Topics Website - capital vs current? Initial development costs that result in creation of an asset should be capitalized to Class 12 but could be Class 46 if very large client, like a bank with their own network infrastrcture equipment and systems software. Cost of maintaining a website is generally a current expense. Refer to IT 128R CCA -Depreciable property (look for enduring benefit  and discussion on capital vs current ) Websites are typically updated and changed on an ongoing basis. CRA Document No's that might be helpful - but you'll require a subscription to CCH or Carswell to get them.. Web page development costs may be capital expenses depending on the web page's expected useful life CRA Document No 2010-0380521E5 Current expenses or capital expenditure? Property Property rules apply equally to self-employment as a self-employed person owns property used in the business active manner by the business or in a rental (passive use) Here's what another accountant said: "To the best of my knowledge, there is nothing in the CICA Handbooks that dictates or even suggests an appropriate capitalization policy or a depreciation policy. These have historically been matters for professional judgement and would normally take into account concepts like materiality and the size of the company. In fact, arguably, the concept of a capitalization threshhold goes against all the rules in the CICA handbook and is done as an administrative convenience only by accountants where the amounts are not considered to be material. It has been a few years since I looked at the handbook on these issues and it is possible that it may have changed since I last looked at it, but I just took a quick look and didn't find anything. As a bookkeeper, I would normally talk to the company's accountant and run these issues by him or her so that we are both on the same page. With respect to depreciation policy, if the company is small and the amounts not material, some accountants will just follow the tax treatment if there is an argument to to made that the difference would not be material. Hope this helps." Gordon Holley, CA, CFP, CPB BeanKeepers (Canada) Bookkeeping Franchise Company Self-employed: Classes of depreciable property  They don't make it easy for you, but CCH Preparing your Income Taxes 886t.12 says that printers under $10,000 and printers under $100,000 fall into Class 45/50/52 and large printers costing over $100,000 are Class 8 rather than Class 45. If you've put something in the wrong class, it's possible to re-classify the asset.  There's a process for re-classification found in CCH 871 where there are several pages of technical examples. See ITA 13(5),(6) 52; IT190R2.  IT472: Class 8 Class 10 and Class 10.1 Class 52 100% (Computers) Changes to IT Regulations can be passed by Order-in-Council and posted in the Gazette, rather than passed by Parliament. It’s easier to change a regulation than it is to change the Income Tax Act. Find the CCA changes proposed in the 2009 budget posted in the Canada Gazette: Original regulations Capital Cost Allowance – 2009 Budget Measure Regulations amending original Capital Cost Allowance – 2009 Budget Measure CCA and Deemed Dispositions Non-arm's length acquisition - Calculation of Cost Self-Employed: Common CCA Classes Electronic office equipment and data network Class 8 20% Photocopiers, telephones, Cost minimum increased from $200 to $500 May 1, 2025 Class 10 30% General Purpose electronic data-processing equipment and systems software acquired before March 23, 2026 Class 12 100% Cost limit increased from $200 to $500 May 1, 2025 Includes computer software (not systems software) The half year rule applies to some Class 12 items and not others Class 45 45% Computer equipment and software systems acquired after March 22, 2026 Class 46 30% Data network infrastructure and systems software for equipment acquired after March 22, 2026 (usually Class 8) Class 50 55% General purpose computer equipment and systems software acquired after March 18, 2026 not used principally as electronic process control, communications control or monitor equipment and systems software related to such equipment and data handling equipment not ancillary to general purpose computer equipment Class 52 100% Jan 27, 2026 to Feb 1, 2026 Computer Equipment & Systems Software - 100% Half year rule will not apply  Must not be a change in use or reverts to Class 50 above  iPhones qualify T4037 Capital Gains Depreciable property dispositions Buildings:Restricted terminal loss/no capital loss IT 478 Recapture & Terminal Loss T1 Schedule 3 IT 285 Capital Cost Allowance - General Comments Other Interpretation Bulletins 27. Refer to the current version of the following bulletins (listed alphabetically by subject) for information on CCA claims regarding particular types of property: Building IT-79 Certified Feature Productions and Certified Short Productions IT-441 Class 8 property IT-472 "Construction" - Meaning of IT-411 Condominiums IT-304 Contractor's moveable equipment IT-306 Disposition of depreciable property IT-220 Earth-moving equipment IT-469 Elections under Regulation 1103 IT-327 Emphyteutic lease IT-324 Gas and oil exploration and production equipment IT-476 Industrial mineral mines IT-492 Leasehold interests IT-464 Leasing property IT-443 Logging assets IT-501 Manufacturing and processing machinery and equipment IT-147 Multi-unit residential buildings IT-367 Partial disposition of property IT-418 Patents, franchises, concessions and licences IT-477 Pipelines IT-482 Pollution control property IT-336 Radio and television equipment IT-317 Recapture and terminal loss IT-478 Rental properties - $50,000 or more IT-274 Rental properties - restrictions IT-195 Taxation year of individuals IT-172 Transferred and misclassified property IT-190 Vessels IT-267 Video tapes, films, computer software and master recording tapes IT-283   28. In certain circumstances, the capital cost of depreciable property may be determined or altered by special provisions in the Act. The following list indicates some of these provisions and the interpretation bulletins currently issued that provide details of their application: The Act Description of provision discussed in bulletin Bulletin 13(5),(6) Transferred property or misclassified property IT-190 13(7) Passenger vehicle cost in excess of $20,000 IT-521 13(7.1) Receipt of inducements or other forms of assistance IT-273 13(12) Expenses of representation IT-99 13(21)(b) Capital cost allowance - depreciable property IT-128 13(21)(c) Conversion of property to and from inventory IT-102 20(1)(a), (aa) Cost of clearing or levelling land IT-485 20(1)(a), 21(1) Election to capitalize cost of borrowed money IT-121 44 Replacement property, expropriation of property IT-259 69(1) Property acquired in "non-arm's length" transaction IT-169 69(1) Property acquired as a gift or from inheritance IT-209 73 Transfer of property to a spouse IT-258 80 Debtors gain on settlement of debt IT-293 85 Transfer of property to a corporation IT-291 98(3) Distribution of property on cessation of partnership IT-471 107(2) Property distributed by trust to a capital beneficiary IT-209 127(5) Investment tax credit IT-331

 

 

 

 

 

 

 

 

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