Immediate Expensing: Budget 2021 and the Expanding Opportunities
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.
Gearing Up for the December 2023 Deadline
With September already behind us, it is important to be aware of the timelines established by the Department of Finance for these tax measures.
Immediate Expensing (EPOP)
Until December 31, 2023, an EPOP can leverage these benefits, provided the property is procured, operationally ready, and was essentially unused before its procurement.
Extended Window for Certain Unincorporated Businesses
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.?