The 2019 tax filing season has arrived and with that comes
changes and reminders which can impact your tax return. Here are
four changes you should be aware of:
Accelerated Investment Incentive Property
The proposed Accelerated Investment Incentive was introduced to
allow businesses in Canada to increase the tax depreciation
deduction with respect of the cost of their capital investments in
the year of acquisition.
Generally, businesses that purchase capital investments (such as
equipment, vehicles, etc.) are able to deduct a portion of the cost
according to prescribed rates to account for a depreciation factor.
This deduction is referred to as capital cost allowance
("CCA"). Prior to the introduction of this incentive,
capital asset additions made in a year would be subject to the
"1/2 year rule" whereby 50 per cent of the net additions
is used to calculate the CCA deduction.
