What Is CCA?
CCA allows you to deduct a portion of your vehicle’s cost each year, spreading out the expense instead of claiming it all at once.
How to Determine Your CCA Claim
✅ Find Your Vehicle’s Value
Purchased this year? Use the total cost, including taxes and fees.
Claimed in prior years? Use the Undepreciated Capital Cost (UCC) from your last tax return.
Don’t know the value? Get a market estimate from a car valuation tool and keep a record.
✅ Calculate Your Business-Use Percentage
Use a logbook to track total and business kilometers driven.
(Business km ÷ Total km) × 100 = Business-Use Percentage
✅ Identify the CCA Class
Most vehicles fall under Class 10 (30%).
If the cost is over $30,000 before tax, it falls under Class 10.1.
✅ Apply the Half-Year Rule
In the first year, claim only 50% of the normal CCA amount.
Example 1: First-Year Vehicle Purchase
🚗 Vehicle cost: $25,000
📊 Business use: 75%
📝 CCA rate: 30% (Class 10)
📉 Half-year rule applies
Year 1 Calculation:
$25,000 × 30% = $7,500 (full CCA amount)
Half-year rule: $7,500 ÷ 2 = $3,750
Adjust for business use: $3,750 × 75% = $2,812.50 deduction
Year 2 Calculation:
Remaining UCC: $25,000 - $3,750 = $21,250
$21,250 × 30% = $6,375
Adjust for business use: $6,375 × 75% = $4,781.25 deduction
Example 2: Previously Claimed Vehicle
If you claimed CCA before, use your last year’s UCC.
📄 Example:
Last year's UCC: $18,000
Business use: 80%
CCA rate: 30%
Yearly Calculation:
$18,000 × 30% = $5,400
Adjust for business use: $5,400 × 80% = $4,320 deduction
New UCC balance: $18,000 - $5,400 = $12,600 for next year
What If You Don’t Know Your Vehicle’s Value?
If you don’t have the original cost, estimate its fair market value at the start of the tax year.
📌 How to Get a Value Estimate:
Use Kelley Blue Book or Canadian Black Book.
Keep a printout or screenshot for your records.
Use this value for CCA calculations.
How CloudTax Makes It Easy
💡 No manual calculations needed! Enter your vehicle details and business-use percentage, and CloudTax automatically calculates your CCA.
Tracking CCA ensures you maximize deductions while staying CRA-compliant. Start recording your vehicle expenses today! 🚗💨