Buildings and additions: excluded
Buildings in Classes 1 and 3, including additions and alterations, are excluded from the Mega Deduction. The separate Budget 2025 measure for eligible manufacturing or processing buildings (90% floor space used for M&P) is a different, time-limited rule.
Examples of buildings, additions and structural alterations
- office and warehouse buildings
- additions and structural alterations
- most leasehold improvements to structures
Planning tip
Split contracts so that equipment installed in a building is invoiced separately from the structural work. The equipment qualifies even though the building does not.
CCA Class 1 / 3 · regular rate 4% declining balance · half-year rule normally applies in year one.
Calculate the deduction on buildings, additions and structural alterations
Worked examples (Ontario)
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction, small business rate | Tax reduction, general rate |
|---|---|---|---|---|
| $25,000 | $500 | $500 | $56 | $133 |
| $100,000 | $2,000 | $2,000 | $224 | $530 |
| $250,000 | $5,000 | $5,000 | $560 | $1,325 |
Buildings and additions by province
- Buildings and additions in Alberta
- Buildings and additions in British Columbia
- Buildings and additions in Saskatchewan
- Buildings and additions in Manitoba
- Buildings and additions in Ontario
- Buildings and additions in Quebec
- Buildings and additions in New Brunswick
- Buildings and additions in Nova Scotia
- Buildings and additions in Prince Edward Island
- Buildings and additions in Newfoundland and Labrador
- Buildings and additions in Yukon
- Buildings and additions in Northwest Territories
- Buildings and additions in Nunavut
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 41-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
$97$47 CAD one-time, instant download
Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.