In 2021, the Department of Finance unveiled an enticing opportunity for certain Canadian businesses to immediately claim up to $1.5 million per year in depreciation expense on eligible properties. This strategic move was designed to bolster the economy, facilitate business growth, and incentivize investments in the nation.
In this article, Crowe MacKay's tax advisors help Canadians navigate the complexities of the immediate expensing framework introduced in Budget 2021. Our experts share details on qualifying assets, eligibility, and crucial deadlines related to the policy. By staying informed, businesses can optimize their investments and leverage tax benefits. If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
For a deeper dive into this immediate expensing framework, consider the following references from the Government of Canada:
With September already behind us, it is important to be aware of the timelines established by the Department of Finance for these tax measures.
Until December 31, 2023, an EPOP can leverage these benefits, provided the property is procured, operationally ready, and was essentially unused before its procurement.
Unincorporated businesses carried on directly by Canadian resident individuals and partnerships exclusively consisting of Canadian individuals may have an extended window to utilize the immediate expensing incentive until December 31, 2024.
If feasible, consider purchasing capital assets for your business before December 31, 2023, rather than in early 2024. This type of planning can help ensure that your business can benefit from the immediate expensing incentive.
This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.
If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.
Thank you for your submission someone will be in contact with you shortly.