[Verse 1]
When you buy assets for your business trade
There's a system for the costs you've paid
Can't expense it all in year one
CCA spreads it out until it's done
Different classes for each asset type
Rates and rules that must be applied right
[Chorus]
CCA classes, know your rates
Declining balance calculates
Half-year rule in year one applies
Recapture when the proceeds rise
Terminal loss when assets go
CCA system helps cash flow
[Verse 2]
Class One buildings at four percent
Class Eight furniture, twenty percent
Class Ten vehicles at thirty rate
Class Twelve tools don't hesitate
One hundred percent in year of use
Each class has its own special rules
[Chorus]
CCA classes, know your rates
Declining balance calculates
Half-year rule in year one applies
Recapture when the proceeds rise
Terminal loss when assets go
CCA system helps cash flow
[Bridge]
When you sell and get more than book
Recapture income, take a look
If proceeds beat the UCC
Income inclusion, that's the key
But if the balance still remains
Terminal loss reduces gains
[Verse 3]
Undepreciated capital cost
That's your pool, track what's not lost
Take the rate times the balance there
Half of additions, that's your share
Maximum claim but not required
Flexibility when cash is tired
[Chorus]
CCA classes, know your rates
Declining balance calculates
Half-year rule in year one applies
Recapture when the proceeds rise
Terminal loss when assets go
CCA system helps cash flow
[Outro]
From acquisition to disposal day
CCA guides the tax you pay
Classes, rates, and rules combined
Keep these concepts in your mind