Accelerated investment incentive property (AIIP)The Government of Canada tabled the Fall 2018 Economic Statement on November 21, 2018.
As of November 20, 2018, a new measure, the Accelerated Investment Incentive, has come into effect. This measure will allow an enhanced deduction for the first year for certain eligible properties that are subject to capital cost allowance (CCA) rules.
For more information, we invite you to consult the following links:
For the Accelerated Investment Incentive:
Information on claiming capital cost allowance (CCA)
Therefore, for self-employed persons and owners of rental properties as well as workers who have employment expenses, if you capitalize depreciable property after November 20, 2018, an accelerated deduction will apply to the property.
For these in some pages of the "Interview" tab, such as for "Motor Vehicle Expenses" or for "CCA" you have a red "New" sign indicating a change to the accelerated investment incentive property (AIIP).
If the property is added after November 20, 2018, go to the line "Description and amount of capital additions of AIIP new" and enter a short description of the property and the amount paid.
The accelerated investment incentive property will have the effect of suspending the half-year rule for eligible properties, we invite you to consult the links cited above for a better understanding.
You will note that in columns 4 and 8, changes based on AIIP have been added and that column 10 indicates the amount subject to CCA on forms T2125 and T776 in sections A.
For employees who have employment expenses, see Form T777.
For Quebec residents, the same rules apply, however. We invite you to consult the following link.
https://www.revenuquebec.ca/en/press-room/tax-news/details/161513/2018-12-06/
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