Capital Cost Allowance Class 8 And 50

[Sangwone]

I am wondering about the difference between class 8 and 50.

Where should I put my phone and usb hard drive into?

Also are monthly subscription fees for using Microsoft Onedrive a business expenses or a CCA?

[Carolina_22]

Class 8:

• Any property you have acquired that does not fall into another class will typically fall into Class 8. The class often includes furniture, appliances, some fixtures, machinery, and other equipment. Class 8 also includes electronic communications equipment, data network infrastructure equipment, and systems software for that equipment.
• As per the CRA:

  Examples are furniture, appliances, and tools costing $500 or more per tool, some fixtures, machinery, outdoor advertising signs, refrigeration equipment, and other equipment you use in the business.

  Photocopiers and electronic communications equipment, such as fax machines and electronic telephone equipment are also included in Class 8.

Class 50:

• Include in Class 50 property acquired after March 18, 2007, that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment. This means computers, electronic office equipment, and systems software for that equipment fall into Class 50 with a CCA rate of 55 percent if it was purchased after that date.

Your phone and USB hard drive would be included in class 50. Also, you can include subscription fees as either a business expense or you can take CCA off of it.

For more information please refer to the following Canada Revenue Agency (CRA) article:

• Classes of depreciable property

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