Class 8 (CCA class for equipment and furniture)
Class 8 is a capital cost allowance class in Schedule II of the Income Tax Regulations. Its residual paragraph covers tangible capital property not included in another class, with listed exceptions, and the CRA gives furniture, appliances, machinery and other equipment used in the business as examples.
A buyer allocating purchase price to furniture and equipment meets this class, because the CRA groups depreciable property into classes. See how equipment should be priced in a sale and capital cost allowance.
What falls in it
Schedule II opens the class with property not included in listed other classes that falls within its paragraphs. Paragraph (i) takes in tangible capital property not included in another class in the Schedule, except items such as land, animals, an oil or gas well and a mine; the CRA’s folio S3-F4-C1 adds that section 1102 of the Regulations can also exclude property. Other paragraphs name outdoor advertising poster panels and bulletin boards and greenhouses with a rigid frame and replaceable flexible plastic cover. The CRA adds photocopiers and electronic communications equipment, and says data network infrastructure equipment acquired after March 22, 2004 goes to Class 46.
What to ask
- Which assets the seller treats as Class 8 and the undepreciated capital cost of the class
- Whether each asset in the allocation fits Class 8 or a more specific class
- Whether the allocation in the agreement matches the assets listed in the schedules
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of Canada (Department of Justice)GovernmentIncome Tax Regulations, Schedule II (classes of depreciable property, including Class 8)
- 02Canada Revenue AgencyGovernmentClasses of depreciable property
- 03Canada Revenue AgencyGovernmentIncome Tax Folio S3-F4-C1, General Discussion of Capital Cost Allowance
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