Uniform Final Exomination Report
TABLE
- 1997 125
III
A FORMULA FOR CALCULATING THE PRESENT VALUE OF REDUCTIONS IN TAX PAYABLE DUE TO CAPITAL COST ALLOWAI{CE Marginal
Rate of
Investment
Rate of
Cost
Income tax
Capital Cost Allowance
(
Rate of Return
+ry)
x(l
+ Alffilfftq x (1
+
Rate of Return
)
MAXIMI.JM CAPITAL COST ALLOWANCE RATES FOR SELECTED CLASSES
Class1.... Class 3 Class 8 Class 9
Class 10 Class 10.1 Class 12 Class 13 Class 14 Class 17 Class 36 Class 39 Class 43
47o 57c
207o 257o 3A7o 3AVo
1047o
original lease period plus one renewal period (Minimum 5 years and Maximum 40 years) Length of life of property 87o
up
to
257o 30Vo
1007o