Question

For CCA amortization, automobiles and light trucks fit into the:

Multiple Choice 10% category. 5% category. 30% category. 20%
category.

Answer 1

Automobiles and light trucks fit into the 30% category for CCA amortization.

Step-by-step explanation:

In the context of CCA amortization, automobiles and light trucks typically fall into the 30% category.

CCA stands for Capital Cost Allowance, which is a tax deduction that allows businesses to recover the cost of capital assets over time. The CCA rate determines the percentage of the cost that can be deducted each year.

Automobiles and light trucks are considered class 10 vehicles under the Canadian tax system, and the CCA rate for class 10 vehicles is 30%. This means that businesses can deduct 30% of the cost of purchasing automobiles and light trucks as expenses for tax purposes.