Open
Source verified July 14, 2026
Capital cost allowance (CCA)
Deduct rental property costs over time
Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Overview
Capital cost allowance for rental property lets you deduct the cost of depreciable property over several years instead of in the year of purchase. It applies to buildings, furniture, equipment, and eligible disability-related modifications or devices for rental properties.
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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
- For-profit business
- 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 of depreciable property in rental activity.
- Modifications to rental properties to accommodate persons with disabilities.
- Installing disability-related devices and equipment in rental buildings.
Official resources
Program guide
Application form
Supporting document
Eligibility
Who is eligible?
- Sole proprietors.
- Partnerships.
- Businesses and professionals using depreciable property.
Eligible expenses
- Depreciable property such as buildings, furniture, or equipment used in rental activity.
- Eligible disability-related modifications made to a building in the year you paid them.
- Disability-related devices and equipment, including elevator car-position indicators and visual fire-alarm indicators.
Ineligible Costs and Activities
- Land transfer taxes you paid when you bought your property.
- Land.
- Mortgage principal.
- Penalties.
- Value of your own labour, the personal portion of expenses, and the short-term rental portion of total expenses.
Eligible geographic areas
- Canada
How to apply
- Use Area A on Form T776, Form T2042, Form T2121, or Form T2125 to calculate your current-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 lets you deduct the cost of depreciable property over several years instead of in the year of purchase. It applies to buildings, furniture, equipment, and eligible disability-related modifications or devices for rental properties.
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 and used in rental activity.
Eligible disability-related modifications must be made to a building in the year you paid them.
What expenses are eligible under Capital cost allowance (CCA)?
Use of depreciable property in rental activity.
Modifications to rental properties to accommodate persons with disabilities.
Installing disability-related devices and equipment in rental buildings.
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
Who are the financial supporters of the Capital cost allowance (CCA)?
Capital cost allowance (CCA) is funded by Canada Revenue Agency (CRA)