Capital Cost Allowance (CCA) Basics

piano caribbean, reggae k-pop, arabic pop · 3:23

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Lyrics

[Verse 1]
When businesses purchase their tangible dreams
Machinery, buildings, and computing schemes
The taxman won't let you expense it all at once
CCA spreads the deduction across many months

Class Ten for vehicles at thirty percent
Class Eight for furniture, twenty's what's meant
Class Fifty-three for manufacturing tools
Hundred percent in year one breaks all the rules

[Chorus]
Capital Cost Allowance, depreciation's twin
Half-year rule cuts your first year thin
Declining balance method, year after year
UCC gets smaller, the pattern is clear
CCA, CCA, tax savings today
Write it down, write it down, the CCA way

[Verse 2]
Undepreciated Capital Cost holds the key
Original price minus what you claimed previously
Multiply by the rate for your asset's class
Half of normal in year one, that's how time will pass

Accelerated incentive sweetens the deal
First-year bonus makes the savings more real
Class Fifty-three manufacturing gets the full ride
While others wait for their tax benefits to slide

[Chorus]
Capital Cost Allowance, depreciation's twin
Half-year rule cuts your first year thin
Declining balance method, year after year
UCC gets smaller, the pattern is clear
CCA, CCA, tax savings today
Write it down, write it down, the CCA way

[Bridge]
Terminal losses when you sell below the book
Recapture income when proceeds take a second look
Separate classes keep the calculations clean
Most systematic tax shelter you've ever seen

[Verse 3]
Class One buildings at four percent crawl
Class Twelve for software, hundred percent fall
Class Fourteen patents need the straight-line dance
While eligible capital gets its own stance

Pool all assets of the very same type
Calculate together, avoid the audit gripe
Business use percentage scales the claim
Personal portion gets excluded from the game

[Outro]
UCC balance carries to the following year
CCA planning makes the tax burden disappear
From half-year rule to accelerated dreams
Capital Cost Allowance, nothing's quite what it seems

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