CCA Classes Explained: Which Class Does Your Equipment Belong In?
If you buy something that lasts years — a saw, a truck, a computer — you usually cannot deduct the whole bill in the year you paid it. Canada uses capital cost allowance (CCA). Each class has a rate. You deduct a slice each year.
Receipt vs capital
A fuel slip is an expense. A $4,000 tool is probably capital. The photo looks the same in your camera roll. The books are not.
We flag high-value invoices so someone looks before it is published as "supplies." That is a prompt, not a CCA election.
Why class matters
Different classes write off at different speeds. A computer is not a pickup. Claiming the wrong class, or expensing something that should have been capital, is a common adjustment at tax time.
Keep the invoice, the serial if you have it, and the date you put it to use. Your accountant assigns the class. The shoebox's job is to still have the document in seven years.
This is not tax advice. CCA classes and half-year rules change. Confirm with your accountant or CRA's current class list.