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:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/accelerated-investment-incentive.html
Information on claiming capital cost allowance (CCA)
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance.html
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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Webpage: KPA320-20190401093715DE.htm
