Question

The CCA rate used for eligible capital property and goodwill included in Class 14.1 is​ ________.

A. ​7%
B. equal to the cost of the asset divided by the estimated life of the asset
C. ​5%
D. ​10%

Answer 1

The CCA rate or capital cost allowance lets you recoup costs from business assets that have lost value for eligible capital property and goodwill which in Class 14.1 is 5%.

Step-by-step explanation:

The CCA rate included in Class 14.1 is 5%. This CCA (Capital Cost Allowance) rate applies to expenses incurred on or after January 1, 2017, for various depreciable properties, including buildings, patents, and franchises. Before this date, there was a different class for goodwill and other eligible capital property. However, with the introduction of Class 14.1, the CCA rate has been standardized to 5% on a declining balance basis.