The gear that moves data around an office is its own class. Class 46 is data network infrastructure equipment — routers, switches, and similar network hardware. Its cost is deducted over years through capital cost allowance (CCA), and on Form T2125, Statement of Business or Professional Activities, the class is one of the rows in Area A.
What goes in this class
- data network infrastructure equipment acquired after March 22, 2004
- the systems software for that equipment
The class has its own rate, set out on the Canada Revenue Agency (CRA)'s page of classes.
What does not
The same equipment acquired before March 23, 2004. That belongs to Class 8. The acquisition date is the whole test.
Worth knowing
Under proposed changes, new additions of Class 46 property are eligible for an enhanced first-year deduction. This applies to property acquired after April 15, 2024 that becomes available for use before 2027. Property that becomes available for use in 2027 continues to benefit from the accelerated investment incentive, or from the reaccelerated investment incentive; the restrictions on those incentives apply to this property too.
Because this is a proposal rather than settled law, the first-year treatment is worth confirming on the CRA's accelerated investment incentive page when you file.
What to keep
Keep the purchase invoice for the equipment, showing the seller, the date, and what was bought. The acquisition date is what places the equipment in Class 46 rather than Class 8, and the date of purchase also bears on the first-year treatment, so an invoice with a clear date does more work here than usual.
Keep the paperwork for equipment you dispose of as well, since a disposition changes the class balance. Dossier tags the invoice and files it with the year's records, so it is there when you file. Don't send it in with your return — keep it in case the CRA asks to see it.
Official CRA sources
Source: Canada Revenue Agency (canada.ca). Not tax advice.