Class 1 4% | Most buildings/other structures, electrical wiring, plumbing, heating, AC (after 1987). Separate class for rental buildings>$50k | Class 1-MB 10% | New manufacturing buildings (MB) used at least 90% for manufacturing and processing purposes (acquired on or after Mar 19, 2007). NOTE Class 1 has ½ year rule!!! | 1-NRB | New non-residential buildings (NRB) (on/after Mar 19, 2007) 6% | 8 20% | Misc. tangible capital property. Furniture, fixtures, outdoor advertising signs, equipment (photocopiers, fridge, telephone, tools costing $500+, not included in another class) | 10 | Automotive equip. Cars, van, truck, tractor, wagon, trailer 30% | 10.1 30% | Passenger vehicle with cost in excess of prescribed limit ($30k if acquired after 2000). Separate class. Deemed cost 30k, add HST | 12 100% | Tools, instruments, kitchen utensils < $500. Linen, uniforms, dies, moulds, rental video cassettes, computer software. | 13 | Leasehold interest | 14 | Patent, franchise, concession, licence for limited period.no prorate | 17 8% | Roads, parking lots, sidewalks, airplane runways, storage areas, similar surface construction | 29 50%Or 30 | Machinery and equipment used in manufacturing or processing (acquired after Mar 18, 2007 and before 2016). CCA is 50%, straight-line basis, half-year rule applies. After 2016: class 43, with 30% declining balance rate | 43 30% | Manufacturing and processing machinery and equipment acquired after 2016 | 44 25% | Patents and rights to use patented information acquired for limited or unlimited period | 50 55% | General purpose electronic data processing equip. and systems software for the equipment (acquired after Mar 18, 2007) | | PUP | LPP | Carry forward | Nope | 7 years (100%) | Carry back | Nope | 3 years (100%) | Proceeds of disposition | Greater of proceeds or $1000 | Same as PUP | ACB | Deemed greater of ACB or $1000 | Same as PUP |
- CEC negative bal: 1. take into income lesser of (A.negative bal) and (B.all prior CECA). Add 2/3(A-B) 2. Remaining negative balance is untaxed, CEC 0.
- P>UCC: recapture diff, reduce to 0. P<UCC: reduce by P, remaining is terminal loss. P>original cost: CG then recapture.
- Disposition: ½ yr rule only applies when positive balance in CCA
- corps must prorate CCA (from corp’s fiscal year start, not date of purchase!!)
Dividends: CCPC 18% gross up, public/”eligible” 38%. Top tax bracket: 46% of grossed up dividend. Net tax: CCPC 36.3, public 25.5
Interest deduction: only if for property income. Cannot deduct from RRSP
Shares: superficial losses get added back to ACB (delays triggering of loss). (Re)acquired within 30 days, owns some property at end of period. Sales do not affect ACB/share. Brokerage fees added to ACB for purchases, subtracted from proceeds for sales, does not affect ACB for sales.
- ACL claimed against TCG, ABIL any.
Division B: Income for tax purposes (all sources of income - employment, business, property, net taxable capital gain) minus losses in the year. Division C: net capital loss (If ACL is left over after applying against TCG (CG plus LLP and PUP gains), remainder is net capital loss, CB 3, CF 20.), non capital loss, CG deduction.
ABIL: 50%. If greater all other sources of income you will have a NON-CAPITAL LOSS - carried back 3, forward 10.
Personal use property (PUP): owned by taxpayer for personal use/enjoyment. Furniture, sports equipment, personal residence, cars. No ACL, 50% TCG LPP (only these): Print, etching, drawing, painting, sculpture, or similar work of art. Jewellery. Rare folio, rare manuscript, rare book. Stamp. Coin. 50%TCG, 100% of CL may be claimed against gains on LPP. Other capital property: acquired for purpose of earning income.
Principal residence exemption: Exempt portion of CG = [(1+# years designated)/# years owned]*total gain. Must designate. Selling cost added to ACB!
Disposition of newly acquired securities: May 1, 2012: Joseph acquired 750 shares of corporate employer on open market. May 1, 2013: acquired another 750 shares on open market. May 1, 2014: acquired additional 1000 shares under employee stock options. Immediately thereafter, he sells 1500 shares. How should Joseph calculate the cost base on disposition of his shares? On 2014 tax return, he can designate the 1000 stock option shares as constituting part of the shares that were sold. The 1500 shares being sold are deemed to comprise the 1000 stock option shares and 500 of the 1500 shares he acquired on the open market. Alternatively, he can use the weighted average cost of all shares.
Adjusted cost base of shares acquired under stock option: public: employment income added to ACB in year benefit deemed acquired. CCPC: added to ACB in year of disposition.

Standby charge:
Employer-owned: A/B * (2%*C*D)
A = lesser of total personal kms and value for B
B = 1,667 km x [available days/30 (Rounded to the nearest number; if 0.5 then round down)].
C = original cost of vehicle including HST
D = Available days/30 (Rounded to the nearest number; if 0.5 then round down)
Employer – leased: A/B * (2/3*(E-F))
E = lease payments including HST
F = insurance included in lease cost
Reduced standby charge: A/B always 1 unless vehicle used mostly for employment
Operating benefit: personal km * $0.27
Mostly business: personal km *0.27 OR 50% of standby charge. Mostly personal: personal km*0.27
Stock Option Benefits: Timing of recognition: CCPC when shares sold (ACB does not change until sold), Other when option exercised / Division C deduction: CCPC 50% of employment benefit if shares held for 2 yrs or option price>FMV at grant date, Other 50% employment benefit if option price > FMV at grant date
Rollover: no attribution on income for FMV transfers if commercial interest paid within 30 days of Dec 31. Breakdown of relationship, both spouses must make election for CG attribution not to apply. If FMV transfer, no attribution. | Rollover | Election | Election (gift) | Transferor | Proceeds: ACB | Proceeds: FMV (gain/loss) | Proceeds: FMV (gain/loss) | Transferee | ACB: ACB of transferor | ACB: actual price paid (gain/loss when they sell) | ACB: FMV | Attribution | Yes, CG and income back to transferor | Yes, CG and income | Yes, CG and income |

| Proceeds at less than FMV | Transfer at FMV (or gift) | Proceeds greater than FMV | Parent (transferor) | Proceeds: FMV (gain/loss) | Proceeds: FMV (gain/loss) | Proceeds: actual proceeds received | Child | ACB: actual price paid (g/l) | ACB: FMV | ACB: FMV | Attribution | No, child recognizes G/L when they sell. Income yes | No, child recognizes G/L when they sell. Income yes | No, child recognizes G/L when they sell. Income yes |
Add:
M&E(50%)
Amounts paid under Act
COGS for exempt income
Bonus if not paid w/i 180 days
Amortization
Personal expense
Advertising costs, legal accounting fees, refinancing fees , cancellation fees, etc. (amortize over 5 yrs)
CCA recapture
Deduct:
Terminal loss

Add:
M&E(50%)
Amounts paid under Act
COGS for exempt income
Bonus if not paid w/i 180 days
Amortization
Personal expense
Advertising costs, legal accounting fees, refinancing fees , cancellation fees, etc. (amortize over 5 yrs)
CCA recapture
Deduct:
Terminal loss

Attribution: second-generation CG is attributed (substituted property), second-gen property income is not.
“kiddie tax”: applies to dividends from private Canadian or foreign corporation, tax rate on these dividends is top marginal tax rate, and tax payable is net of DTC and FTC.