Capital property

Capital property for GST/HST purposes means the same as for income tax purposes subject to a few exceptions. It includes:

• any depreciable property. This means property that is eligible or would be eligible for a capital cost allowance (CCA) for income tax purposes
• any property, other than depreciable property, from which any gain or loss if you disposed of the property would be a capital gain or capital loss for income tax purposes

Capital property is property you buy for investment purposes or to earn income. It may include capital real property such as land or a building, or capital personal property such as equipment or machinery that you use in your business.

Other examples of capital personal property include:

• photocopiers, computers, and cash registers
• furniture and appliances to furnish places such as offices, lobbies, and hotel rooms
• free-standing refrigerators, ovens, and other large appliances (built-in appliances are fixtures that are usually considered to be part of the real property)

Capital property for GST/HST purposes does not include property described in class 12 (such as chinaware, cutlery, or other tableware costing less than $200), class 14 (certain patents, franchises, concessions, or licences for a limited period), or class 44 (a patent or a right to use patented information for a limited or unlimited period). You can claim input tax credits for these items based on the rules for operating expenses.

For more information on CCA, see Claiming capital cost allowance (CCA).

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• Guide RC4082, GST/HST Information for Charities
• GST/HST Memorandum 8-1, General Eligibility Rules
• GST/HST Memorandum 8-2, General Restrictions and Limitations

Date modified:

2013-04-12