Immediate Expensing Rules: Good Tax Policy?

Over the course of the last two federal budgets (April 16, 2024 and November 4, 2025), the rules for claiming Capital Cost Allowance (CCA) have been uncertain. The proposal to extend immediate expensing rules for certain acquired assets were paused for over a year and then re-introduced in a series of four complex measures which together with new rules for Scientific Research and Experimental Development have become known as the “Productivity Super-Deduction”.  A backdrop appears below. The key question: will this complexity be effective as an economic stimulator?   

Build the tax accounting and financial services practice of the future.  Real Wealth Management™ democratizes the Family Office concept previously only available to ultra-high net worth families.  Now, experienced advisors in Canada can learn to practice holistically with their best tax foot forward – such a critical piece of the capital sustainability puzzle for wealth holders.

Still in a health care emergency that in the short term continues to cloud economic recovery, Canada’s new minority Liberal Government will lead the country through the next phase of the pandemic and into what well could be a period of higher inflation, interest raters and taxes. 

The Accounting Place is hiring!  We currently are looking for an experienced full-time permanent Tax Specialist to work in our office located in Stoney Creek, ON.  For full details and to apply for this position, please visit our website.

Advisors should be aware of the definition of principal residence and the Canadian tax implications regarding the sale of a principal residence. Awareness of the provisions outlined in this article will provide detailed information about qualifying for the principal residence exemption and calculating the optimal time to dispose of capital real property. This is part 1 of a 3 part series on the topic.

While it may be politically popular to consider raising corporate tax rates, it is the opposite that may be needed to get back to economic health in Canada. At least according to the authors of a new report on tax competitiveness, Philip Bazel and Dr. Jack Mintz who will share wisdoms on October 18 at DAC Acuity 2021. The report, entitled “2020 Tax Competitiveness Report: Canada's Investment Challenge” share some startling facts about Canada’s current economic malaise and offers solutions:

It’s a lucrative non-refundable tax credit many people miss out on, particularly those who are younger. The Disability Tax Credit has a real dollar value of about $1300 on the federal return for 2021.  The provision, however, may not be claimable, if long term care home costs over $10,000 are claimed as medical expenses.  Advocates for those who have suffered catastrophic disabilities believe neither of these tax provisions adequately reflect the economic hardship the individual and families endures in these cases. A true story from Knowledge Bureau Faculty Member Kareen Rekowski follows: