New Tax Rules for Writing Off Assets

The April 2021 Canadian Federal Budget announced something called “immediate expensing” for most assets purchased after the budget date of April 18. This applies to Canadian controlled private corporations which we call CCPC’s. The additional deduction will be made on your corporate income tax returns.

The property which must be acquired after April 18, 2021 has to become available for use in the taxation year before 2024, in order to qualify for the immediate expensing measure.

You don’t need to know the CCA classes or the mechanics of making this claim. What you need to do is make sure your books are able to separate the assets purchased after April 18, 2021 from the rest of the additions you made this year. This way you can give the correct information to your tax preparer.