Under the CCA provisions of the Act, a taxpayer may deduct an
amount in respect of the cost of certain property used in a
business. The classes of property and the applicable allowance
rates are described in section 1100 and Schedule II of the
Income Tax Regulations.
The CRA stated that, where the cost of a property qualifies for
inclusion in the classes of property described in Schedule
II, the specific class of the property is determined by
reference to the specific functions of the property and the
circumstances of its usage.
The CRA stated that "drone" is not defined in the Act
or Regulations, but that the CRA understands that an aerial drone
is a type of unmanned aircraft. The CRA also stated that the
Regulations "describe aerial drones as a type of
aircraft" (ed. note: we were unable to find a reference to
"drone" in the Canadian Aviation Regulations,
but the definition of "unmanned air vehicle" appears to
include aerial drones).
Accordingly, in the CRA's view, an aerial drone would be
included in Class 9(g) ("an aircraft") of Schedule II of
the Regulations, which has a CCA rate of 25 percent of the
undepreciated capital cost of the property in the class.
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The CRA provides new housing rebates for individuals who have purchased or built a new house or have substantially renovated a house or made a major addition to a house who plan on living in it personally or letting a relative live there.
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