Rental CCA, Class 1
Most residential rental buildings acquired after 1987 are Class 1: 4% declining balance, and only the building depreciates. The calculator works out the most you could claim, and what claiming now costs when you sell. Nothing is claimed from this page.
Enter the building portion of the cost to see the numbers.
Why most people claim nothing
CCA you claim now is added back as income when you sell, unless the property has fallen in value, which Canadian real estate usually hasn’t. Claiming lowers this year’s tax and raises the bill later.
Claim $0 unless you and your accountant decide otherwise.
What this calculator does not do
- The half-year rule on additions made part-way through a building's life
- Accelerated investment incentive or immediate expensing
- The separate-class election for buildings over $50,000
- Classes other than 1, and anything about selling the property
The tracker carries this figure year to year
Each generated package records the undepreciated capital cost it carried forward, so next February’s calculation starts where the last one finished instead of from memory.
The other two free tools
Every T776 expense line, and what belongs on it
All 13 expense categories in the CRA's own wording, with the things landlords most often file wrong: condo fees, mortgage payments, the appliance you replaced.
Open the cheat sheet Decision toolRepair, or improvement?
Two questions about the work you had done, and where the answer lands: a current expense on line 8960, or a capital addition that depreciates instead.
Answer two questionsThis calculation is generated from the information you entered and is provided for record-keeping purposes only. It is not tax advice. Verify amounts against your records and consult a qualified tax professional.