What CCA class is used for credit card processing devices (under $500.00)?
Thanks
Personally, I would just expense it. It is actually Class 12 with 100% write off.
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It would likely be considered ancillary data processing equipment under class 50. See this interpretation.
Class 12 specifically excludes electronic communication devices and electronic data processing equipment.
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If it is “under $500” don’t bother capitalizing it (unless your client insists). It’s not worth the effort. The amount of tax reduction from that $500 (as an expense) is so small that CRA doesn’t care about it being capitalized. You will probably charge more for your time spent capitalizing it than the client will get back from expensing it. This is why Class 8 specifies “$500 or more”, and is used as a rule of thumb for most classes. In fact, when I worked for a large firm, they used $1,000 as a threshold.
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“This is why Class 8 specifies “$500 or more””
Cannot find that in Class 8 of Schedule II of my copy of the Act?
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See Class 8 here: Capital Cost Allowance
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@dklassencga
That might be an interesting description.
However, in reading various generic descriptions, confusion with other sections and provisions, such as Class 12, may result. (Class 12, para (h)(iii) Tools less than $500 after 01 May 2006, and excluding certain electronic equipment)
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With regard to Class 8, Schedule II of the Actual Regulations (Current to 2020-04-21) states:
CLASS 8 (20 per cent)
Property not included in Class 1, 2, 7, 9, 11, 17 or 30 that is
• (a) a structure that is manufacturing or processing machinery or equipment;
• (b) tangible property attached to a building and acquired solely for the purpose of
o (i) servicing, supporting or providing access to or egress from, machinery or equipment,
o (ii) manufacturing or processing, or
o (iii) any combination of the functions described in subparagraphs (i) and (ii);
• (c ) a building that is a kiln, tank or vat, acquired for the purpose of manufacturing or processing;
• (d) a building or other structure, acquired after February 19, 1973, that is designed for the purpose of preserving ensilage on a farm;
• (e) a building or other structure, acquired after February 19, 1973, that is
o (i) designed to store fresh fruits or fresh vegetables at a controlled level of temperature and humidity, and
o (ii) to be used principally for the purpose of storing fresh fruits or fresh vegetables by or for the person or persons by whom they were grown;
• (f) electrical generating equipment acquired after May 25, 1976, if
o (i) the taxpayer is not a person whose business is the production for the use of or distribution to others of electrical energy,
o (ii) the equipment is auxiliary to the taxpayer’s main power supply, and
o (iii) the equipment is not used regularly as a source of supply;
• (g) electrical generating equipment, acquired after May 25, 1976, that has a maximum load capacity of not more than 15 kilowatts;
• (h) portable electrical generating equipment acquired after May 25, 1976;
• (i) a tangible capital property that is not included in another class in this Schedule except
o (i) land or any part thereof or any interest therein,
o (ii) an animal,
o (iii) a tree, shrub, herb or similar growing thing,
o (iv) an oil or gas well,
o (v) a mine,
o (vi) a specified temporary access road of the taxpayer,
o (vii) radium,
o (viii) a right of way,
o (ix) a timber limit,
o (x) a tramway track, or
o (xi) property of a separate class prescribed by subsection 1101(2a);
• (j) property not included in any other class that is radiocommunication equipment acquired after May 25, 1976;
• (k) a rapid transit car that is used for the purpose of public transportation within a metropolitan area and is not part of a railway system;
• (l) an outdoor advertising poster panel or bulletin board; or
• (m) a greenhouse constructed of a rigid frame and a replaceable, flexible plastic cover.
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Thank you all for your replies - I appreciate your input!