Start by identifying the property
An operating expense and the purchase of an asset can receive different treatment. Describe what was acquired, how it will be used, when it became available for use and whether any personal use is involved. Keep the purchase and financing records.
A software category named equipment does not determine the tax class or establish eligibility. Improvements, replacements and bundles of equipment may need further analysis.
Book accounting and tax can differ
Depreciation in the financial statements reflects the accounting treatment of an asset. CCA follows the applicable tax rules. The two calculations may therefore produce different amounts, and a tax adjustment may be needed.
For example, an asset bought near year-end needs a review of the relevant facts and current rules. The payment date alone does not answer every question about a claim. This example does not recommend a rate or deduction.
Preserve the history
Give your accountant details of sales, trade-ins, damage, insurance proceeds and changes in use as well as purchases. A disposal can affect the tax position even when the sale proceeds look small compared with the original cost.
Keep records relating to longer-lived assets for the required period. A general record-retention rule should not be treated as permission to destroy acquisition history that remains relevant.
Sources & editorial notes
Sources checked October 23, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Claiming capital cost allowanceCanada Revenue Agency
- Where and how long to keep recordsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.