Canadian Controlled Private Corporations (“CCPCs”) have until December 31, 2023 to acquire capital property eligible for immediate expensing. The temporary measure applies to eligible property acquired and available for use before January 1, 2024. Up to $1.5 million per taxation year is available for sharing among each associated group of CCPCs, with the limit being prorated for shorter taxation years.
Eligible property includes capital property that is subject to the CCA rules, other than property included in CCA classes 1 to 6, 14.1, 17, 47, 49 and 51. The excluded classes are generally those that have long lives, such as buildings, fences, and goodwill.
No carry-forward of excess capacity is allowed so CCPCs looking to benefit from the final year of immediate expensing should ensure eligible property is acquired and available for use by December 31, 2023.
Note the immediate expensing for sole proprietors and Canadian partnerships where all members are individuals have until December 31, 2024 to acquire eligible property for immediate expensing.
The information in this article is of a general nature and is in summary form. Contact one of our tax professionals to discuss these matters in the context of your situation before acting upon such information.