A note on the Immediate Expensing of Depreciable Capital Assets,

• The Federal Budget 2021 proposes to permit the full cost of eligible property acquired by a Canadian-controlled private corporation (CCPC) (i.e. incorporated in Canada and not controlled by non-residents) on or after Budget Day (April 19, 2021) to be deducted, provided the property becomes available for use in the business before January 1, 2024.

• Up to $1.5 million of expenditures per taxation year is available for immediate expensing and shared among each associated group of CCPCs. For CCPCs with less than $1.5 million of expenditures in a year, there is no carry forward of unused capacity into following years. For CCPCs with more than $1.5 million of expenditures, normal rules apply.

• Eligible property includes depreciable capital property, other than property included in the following CCA classes, among others:
– Class 1 to 6 (buildings) – Class 17 (communications equipment)
– Class 14.1 (purchased goodwill and eligible capital property)

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