Buildings and additions in British Columbia
A British Columbia corporation buying buildings, additions and structural alterations on or after September 15, 2026 cannot use the Mega Deduction; regular Class 1 / 3 CCA at 4% still applies. Combined tax rates in British Columbia: 11.0% on small business income and 27.0% at the general rate.
Buildings and additions in British Columbia
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $500 | $500 | $55 | $135 | $0 |
| $100,000 | $2,000 | $2,000 | $220 | $540 | $0 |
| $250,000 | $5,000 | $5,000 | $550 | $1,350 | $0 |
BC's PST generally applies to equipment purchases and is added to the capital cost you can write off. 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.
See also: all assets in British Columbia · Buildings and additions in other provinces
Free: the Year-End Purchase Checklist (PDF)
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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.
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