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?   

The Federal Budget has put an emphasis on positioning Canada for success in the innovation economy of tomorrow. With so many businesses poised to change hands soon, advisors must be thinking about preparing the next generation of leaders for the new economy, despite disruptive trends and significant tax changes. The continuity, and even survival, of these companies could depend on your help.

The Distinguished Advisor Conference has established its reputation over the past 14 years as the most comprehensive and strategic educational conference available to tax and financial advisors. Experts and visionaries from all sides of the financial services industry will help you refresh your vision and mission, and execute on the strategic and technical skills required to serve your clients in this time of significant change.

Stay up-to-date with the constant changes in the industry: Dean Cockell, MFA™, Manitoba

“When you reach the end of your rope, tie a knot in it and hang on.” Franklin D. Roosevelt

Whether you live in a conjugal relationship is an important tax issue, as it affects many provisions on the return. Failure to report your status properly can, in fact, lead to expensive penalties. So, if your relationship status changed in 2016, consider discussing the following checklist with your advisor. It’s a “baker’s dozen plus one,” chocked full of potential tax filing provisions for couples that can save you time and money, especially on a tax audit:

There are a number of omissions that can occur in the rush at the end of tax season. One of them is missing the reporting of income benefits received by families in 2016. It’s important to remember that for the first six months of 2016 the UCCB (Universal Child Care Benefits) were received and they are taxable. That’s a double whammy for many upper-middle-income families who also lost the family income-splitting provisions. There are now no child tax supports at all for them.