Landlord Tools
CCA Calculator Canada — Rental Property Depreciation (Class 1)
Calculate annual Capital Cost Allowance (CCA) for a Canadian rental property. Shows the full declining-balance schedule at the 4% Class 1 rate with half-year rule.
$
years
Class 1 buildings depreciate at 4% declining balance. The half-year rule applies in year one (2% effective rate).
Related Calculators
💸📊📈📋🏷️
Rental Cash Flow Calculator
Calculate monthly cash flow and cash-on-cash return.
Cap Rate Calculator
Calculate NOI and capitalization rate for any property.
Rental Property ROI Calculator
Total return including cash flow, equity, and appreciation.
Rent Increase Calculator
Check the allowable rent increase in your province.
Capital Gains on Rental Sale
Estimate capital gains tax on an investment property sale.
Frequently Asked Questions
What CCA class applies to a Canadian rental property?+
Residential rental buildings are classified as Class 1 with a 4% declining-balance CCA rate. Only the building portion qualifies — land is never depreciable. If you are unsure of the land/building split, a common assumption is 75% building and 25% land, but a property appraiser can provide a formal allocation.
What is the half-year rule for CCA in Canada?+
In the year you acquire a rental property, the CRA requires you to claim only 50% of the normal CCA deduction (the half-year rule or 'accelerated investment incentive' for some classes). This means in year one you claim 2% of building value instead of the standard 4%.
Should I always claim CCA on my rental property?+
Not necessarily. Claiming CCA reduces your UCC, which can trigger recapture when you sell. Many tax advisors suggest only claiming CCA to reduce rental income to zero — not to create a loss. Consult a tax professional before claiming CCA each year.
What is UCC (Undepreciated Capital Cost)?+
UCC is the remaining tax value of your property after CCA has been deducted over the years. When you sell the property, if the sale price exceeds the UCC, the difference is recaptured and added to income. If the sale price is less than the UCC, you may have a terminal loss.