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Source verified August 21, 2026
Capital cost allowance (CCA)
Deduct depreciable rental property costs
Latest source updateLast Update: October 8, 2026Latest change: The non-arm's-length passenger-vehicle cost limit is updated from $37,000 to $38,000 for fiscal periods in 2025, and the example is revised accordingly.View change
Latest source update
Last Update: October 8, 2026
Latest change: The non-arm's-length passenger-vehicle cost limit is updated from $37,000 to $38,000 for fiscal periods in 2025, and the example is revised accordingly.
CCA rule update for non-arm's-length vehicle costs
The Non-arm's length transactions guidance now shows a passenger-vehicle cost limit of $38,000 for fiscal periods in 2025, up from $37,000 in 2024. The example on the page was also updated to 2025, with the related purchase year changing from 2015 to 2016.
Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Overview
Capital cost allowance for rental property helps deduct the cost of depreciable property used in rental activity. It also covers buildings, furniture or equipment, and special situations such as non-arm's length transactions, building dispositions, and changes in use.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- No objectives are currently available
Eligible Funding
- Varies by project
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Availability timeline
2026
Periods: 1
Activities funded
- Use depreciable property in rental activity.
Official resources
Eligibility
Who is eligible?
- Individuals or partnerships owning rental property.
Eligible expenses
- Depreciable property such as buildings, furniture or equipment used in rental activity.
Ineligible Costs and Activities
- Land
Eligible geographic areas
- Canada
How to apply
- Use Area A on Form T776, Form T2042, Form T2121, Form T2125, or Form T1175 to calculate your current tax year CCA, recaptured CCA, and terminal losses.
- Record equipment, building, and land additions and dispositions in Areas B, C, D, E, and F of Form T776, as applicable.
Processing and Agreement
- Review how the property is classified for CCA purposes.
- Apply the appropriate CCA rules and rates.
- Claim the deduction when reporting business or professional income.
Additional information
- Special rules may apply to non-arm's length transactions, building dispositions in the year, and changes in use.
Frequently Asked Questions about the Capital cost allowance (CCA) Program
What is the Capital cost allowance (CCA)?
Capital cost allowance for rental property helps deduct the cost of depreciable property used in rental activity. It also covers buildings, furniture or equipment, and special situations such as non-arm's length transactions, building dispositions, and changes in use.
What is the deadline to apply?
The program is accepting continuous intake
Who is eligible for the Capital cost allowance (CCA) program?
To be eligible for the Capital cost allowance (CCA) program, you must:
The property must be depreciable property used in rental activity.
What expenses are eligible under Capital cost allowance (CCA)?
Use depreciable property in rental activity.
Who can I contact for more information about the Capital cost allowance (CCA)?
You can contact Canada Revenue Agency (CRA).
Where is the Capital cost allowance (CCA) available?
The Capital cost allowance (CCA) program is available across Canada.
Is the Capital cost allowance (CCA) a grant, loan, or tax credit?
Capital cost allowance (CCA) is a Tax Credits