T776 Air Conditioner Class? Is it Class 1 or 8?

[OttawaLandlord]

I know that appliances like washers, dryer, etc... are class 8. If I buy a house and later I decide to add a central air conditioner... Would this addition be considered under the class 8 category? or should it be Class 1?



CRA mentions that air conditioners (which are not window units) are class 1. But I am not sure if that is for the case when the air conditioner is already included as part of the building purchase (and not when it is purchased separate)?



I find that amortizing at 4% is extremely low for an air conditioner appliance regardless if it is a windows unit or central.




A rental building may belong to classes 1, 3, 6, 31, or 32, depending on what the building is made of and the date you acquire it. You also include in these classes the parts that make up the building, such as:

• electric wiring;
• lighting fixtures;
• plumbing;
• sprinkler systems;
  heating equipment;
  air conditioning equipment

• (other than window units);
  elevators; and
  escalators.

 

[Thomas Beyer]

One has to distinguish between attached and detached/movable items. As such, assuming it is attached like any heating system usually is, it is part of the building and canNOT be expensed separately like a fridge or stove.



Of course you could argue otherwise with CRA, and maybe get away with 10% (as opposed to 4%) depreciation for years, but I'd say that is pushing it. But hey, changes in the law often start with some renegades.

 

[OttawaLandlord]

Thanks Thomas,



At least they should allow reporting these "attached" appliances in a separate track-able class 1 so once they stop working a terminal loss could be claimed (similar to the way can done for Class 8 appliance costing more than $1,000). Of course, I am talking about fairness and not what is $$$ convenient for CRA . All this guidelines are very grey areas. I don't "volunteer" but if anyone wants to challenge CRA s/he has my moral support



Cheers