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What Capital Cost Allowance class are computers and computer equipment in?

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What Capital Cost Allowance class are computers and computer equipment in?

Computer Equipment Capital Cost Allowance

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Question: What Capital Cost Allowance class are computers and computer equipment in?

Answer:

The Capital Cost Allowance class for computers and computer equipment depends on when you purchased the equipment:

  • Capital Cost Allowance (CCA) 50 is used for equipment purchased after March 18, 2007 (excepting the period below) and has a Capital Cost Allowance rate of 55 percent.  The computer equipment and/or systems software in question must not be used "principally as electronic process control, communications control, or monitor equipment" (Canada Revenue Agency).
  • CCA class 52 applies to equipment acquired between Jan. 27, 2009 and Feb. 1, 2011 and has a 100 percent capital cost allowance (CCA) rate. This means that you can deduct 100 percent of a computer purchase the year of purchase rather than simply deducting the amount that the computer has depreciated that year.
  • CCA class 45 is used for old computer equipment and/or systems software purchased after March 22, 2004 but before March 18, 2007. The CCA rate is 45 percent.

Network infrastructure equipment and systems software for that equipment (eg routers, switches, cables, etc.) fall under CCA class 46 and have a CCA rate of 30%.

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