Open
Source verified August 5, 2026
Capital cost allowance (CCA)
Deduct depreciable rental property costs
Latest source updateLast Update: July 19, 2026Latest change: The CRA page added capital gains filing-relief dates for impacted T1 and T3 filers and noted that affected returns can now be submitted and processed.View change
Latest source update
Last Update: July 19, 2026
Latest change: The CRA page added capital gains filing-relief dates for impacted T1 and T3 filers and noted that affected returns can now be submitted and processed.
Capital gains filing relief added
The CRA’s Disposing of a building in the year page now includes a new Capital Gains notice dated March 21, 2025, confirming that impacted returns can be submitted and processed again. It also sets late-filing relief until June 2, 2025 for impacted T1 individual filers and until May 1, 2025 for impacted T3 trust filers, with the relief extended to related forms and elections such as Form T1135, Schedule 15, and Schedule 130. The page also reflects that the Government of Canada does not intend to proceed with the proposed capital gains inclusion rate increase and will maintain the proposed increase in the Lifetime Capital Gains Exemption limit at $1,250,000 for the sale of small business shares and farming and fishing property.
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
Activities funded
- Use depreciable property in rental activity.
Official resources
Program guide
Application form
Supporting document
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.
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 undefined
Who are the financial supporters of the Capital cost allowance (CCA)?
Capital cost allowance (CCA) is funded by Canada Revenue Agency (CRA)