Definition
Capital Cost Allowance (CCA) is how Canadian businesses deduct the cost of depreciable assets over time instead of all at once, and Class 50 is the class that covers most computer hardware — including the ASIC mining rigs and supporting computer equipment a mining business buys. This is general information, not tax advice; classification and timing should be confirmed with a Canadian tax professional.
The 55% declining-balance rate
Class 50 applies to general-purpose electronic data-processing equipment and systems software acquired after March 18, 2007, at a CCA rate of 55% on a declining-balance basis. The high rate reflects how quickly computer hardware loses value to obsolescence — an especially apt fit for mining ASICs, whose useful economic life is short. Each year you claim 55% of the remaining undepreciated balance, so deductions taper over time rather than ending abruptly.
The half-year rule
In the year you acquire an asset, the half-year (or "half-net-additions") rule generally limits your first-year claim to half the normal amount. So $100,000 of Class 50 hardware allows roughly $27,500 of CCA in year one (half of 55%), with the full rate applying to the declining balance thereafter. The capital cost you pool can include non-recoverable taxes, shipping, and installation.
CCA is only available when mining is run as a business, not a hobby, and the deduction reduces the income you report against the value of your mined coins. Because CCA is discretionary and interacts with recapture on sale, plan it with an accountant.
In Simple Terms
Capital Cost Allowance (CCA) is how Canadian businesses deduct the cost of depreciable assets over time instead of all at once, and Class 50 is…