Mega Deduction Calculator

Restaurant and hospitality equipment: eligible

Restaurant equipment is Class 8 (20%) and POS hardware is Class 50. A full kitchen refit that used to take years to write off is now deductible in one year.

Examples of kitchen, bar and hospitality equipment

  • commercial ranges, fryers and walk-in coolers
  • espresso machines and bar equipment
  • POS hardware (Class 50)
  • dining room furniture and fixtures

Planning tip

Leasehold improvements to the building itself (Class 13) are a different category. Confirm with your accountant whether your fit-out is equipment or leasehold improvement.

CCA Class 8 · regular rate 20% declining balance · half-year rule normally applies in year one.

Calculate the deduction on kitchen, bar and hospitality equipment

Advanced assumptions

Worked examples (Ontario)

PurchaseOld year-one deductionNew year-one deductionTax reduction, small business rateTax reduction, general rate
$25,000$2,500$25,000$2,800$6,625
$100,000$10,000$100,000$11,200$26,500
$250,000$25,000$250,000$28,000$66,250

Restaurant and hospitality equipment by province

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.

Year-end planning kit

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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