CAPITAL COST ALLOWANCE - CCA
A annual depreciation or deduction that can be claimed for income tax reasons on the expense of particular assets. CCA or the word capital cost allowance is primarily related to Canada’s taxation. Capital Cost Allowance can be picked up on the assets of a business that are anticipated to last for a particular number of years, such as machinery, buildings, equipment and plant, as well as on developments and additions to a particular assets.
CCA is generally computed according to the diminishing balance system.
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