Capital Cost Allowance

CCA

Depreciation you can claim on a rental building, with a catch on sale.

Capital cost allowance (CCA) is the tax depreciation a landlord can claim on the building (not the land) to reduce rental income. It is optional, and it comes with trade-offs: it cannot be used to create or increase a rental loss, and amounts claimed can be recaptured and taxed when you sell. Claiming CCA on part of your own home can also jeopardize the principal-residence exemption on that portion. It is a deliberate decision, not free money.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.