Goodwill, franchises and licences (Class 14.1): excluded
Class 14 and 14.1 property (franchises, licences, goodwill) is explicitly excluded from the Mega Deduction.
Examples of goodwill, franchise rights and indefinite-life intangibles
- goodwill acquired when buying a business
- franchise rights of indefinite duration
- customer lists and trade names
Planning tip
When buying a business, the purchase price allocation between equipment (eligible) and goodwill (not eligible) now has a much bigger cash impact. Negotiate it deliberately.
CCA Class 14.1 · regular rate 5% declining balance · half-year rule normally applies in year one.
Calculate the deduction on goodwill, franchise rights and indefinite-life intangibles
Worked examples (Ontario)
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction, small business rate | Tax reduction, general rate |
|---|---|---|---|---|
| $25,000 | $625 | $625 | $70 | $166 |
| $100,000 | $2,500 | $2,500 | $280 | $663 |
| $250,000 | $6,250 | $6,250 | $700 | $1,656 |
Goodwill, franchises and licences (Class 14.1) by province
- Goodwill, franchises and licences (Class 14.1) in Alberta
- Goodwill, franchises and licences (Class 14.1) in British Columbia
- Goodwill, franchises and licences (Class 14.1) in Saskatchewan
- Goodwill, franchises and licences (Class 14.1) in Manitoba
- Goodwill, franchises and licences (Class 14.1) in Ontario
- Goodwill, franchises and licences (Class 14.1) in Quebec
- Goodwill, franchises and licences (Class 14.1) in New Brunswick
- Goodwill, franchises and licences (Class 14.1) in Nova Scotia
- Goodwill, franchises and licences (Class 14.1) in Prince Edward Island
- Goodwill, franchises and licences (Class 14.1) in Newfoundland and Labrador
- Goodwill, franchises and licences (Class 14.1) in Yukon
- Goodwill, franchises and licences (Class 14.1) in Northwest Territories
- Goodwill, franchises and licences (Class 14.1) 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.
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Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.