CCA

Also written as capital cost allowance.

Definition

Capital Cost Allowance. The tax-side depreciation system in the Income Tax Act. Assets are grouped into classes with fixed declining-balance rates.

Related terms

Depreciation

Allocating the cost of a long-lived asset over its useful life. For Canadian tax, use Capital Cost Allowance (CCA) instead.

Half-year rule

In the year of acquisition, most CCA classes allow only half of the normal CCA claim, regardless of acquisition date.