Canadian Controlled Private Corporations (“CCPCs”) have until December 31, 2023, to acquire property eligible for temporary immediate expensing measures. Such measures allow eligible businesses to write-off up to $1.5 million of the cost of “eligible property” acquired and available for use before January 1, 2024, rather than write-off the cost of such property gradually based on the prescribed depreciation rate (i.e., the capital cost allowance (“CCA”) rate) that would otherwise apply.
The $1.5 million annual immediate expensing limit must be shared between associated CCPCs.
Eligible property includes depreciable assets subject to the CCA rules, with the exception of certain assets, the most common of which are long-lived assets including buildings and goodwill.
CCPCs seeking to leverage the final year of immediate expensing should acquire eligible property by December 31, 2023, as there is no provision for carrying forward any unused limit.
The above content is for informational purposes only and is general in nature. It is not intended to be advice. No person or entity should act upon the information above without receiving professional advice after all the facts and circumstances specific to their situation are thoroughly reviewed.