CCA Class 8. Furniture and Equipment

Definition

Class 8 of Schedule II to the Income Tax Regulations is the catch-all category for tangible capital property that is not specifically listed elsewhere. The rate is 20% declining balance. Typical Class 8 property includes office desks and chairs, filing cabinets, meeting-room furniture, photocopiers, shelving, outdoor signs, and most equipment that does not meet the criteria for a more specific class.

Key rules

• Scope: paragraph (i) of Class 8 picks up "property not included in any other class" that is tangible, with specific inclusions for shelves, fixtures, photocopiers, display counters, and similar items.
• Rate: 20% declining balance on the class UCC (after the half-year adjustment in the year of acquisition).
• Subject to the half-year rule unless an exception applies. Qualifying RAIIP acquired after 2024 and available for use in 2026 generally receives 1.5 times the normal class rate. See AIIP.
• Items under $500 that would otherwise be Class 8 may qualify as Class 12 at 100% CCA (see Class 12). This depends on the legal classification, not a free choice between rates: the asset must meet the Class 12 definition (for example, a tool used for earning business income and costing less than $500).
• A qualifying leasehold interest generally belongs in Class 13 under its lease-based formula. Building additions and separately owned equipment can require other classes.

Example

A BC corporation opens an office on August 1, 2026 and spends $18,000 on desks, chairs, a meeting table, and filing cabinets. It already has Class 8 UCC of $2,200 from prior years. No dispositions. The items are new and acquired from an arm's-length vendor, and are available for use that day, so they qualify as RAIIP at 1.5× under the enacted rules. Assume a full calendar tax year and that $18,000 is tax capital cost after sales-tax adjustments.

1. UCC opening = $2,200.
2. Additions = $18,000 (all RAIIP).
3. No half-year rule on RAIIP.
4. First-year CCA on RAIIP additions = $18,000 × 20% × 1.5 = $5,400.
5. CCA on existing UCC = $2,200 × 20% = $440.
6. Total CCA = $5,840.
7. Closing UCC = $2,200 + $18,000 − $5,840 = $14,360.

Schedule 8 of the T2 distinguishes AIIP, RAIIP and other property. See Accelerated Investment Incentive Property (AIIP) for the September 2026 proposal.

Common mistakes

• Putting computers or servers in Class 8. They go in Class 50 at 55%.
• Capitalising assembly labour, freight, and non-refundable PST into Class 8 accurately, but forgetting to remove recoverable GST/HST. Only non-recoverable tax is part of capital cost.
• Treating repairs as Class 8 additions. Current repair expenses are deductible in full under ITA s.18(1)(a); see repairs vs. capital.
• Failing to apply the half-year rule on non-AIIP additions.
• Leaving personal-use items in the company's Class 8 pool, triggering a shareholder benefit assessment under ITA s.15(1).

For a genuine lease followed by an option purchase, establish the new asset’s tax capital cost from the buyout payment and applicable costs. Do not automatically add prior rent to capital cost; a financing arrangement or a section 16.1 election can change the analysis.

Official sources

CRA class descriptions, enacted first-year factors, and eligibility definitions.

Related concepts

Class 8 is the default destination for tangible assets that do not match another class. Its CCA mechanics follow CCA overview and the half-year rule, unless modified by AIIP. Exits trigger recapture or terminal loss. For computer equipment see Class 50; for vehicles see Class 10.