New Mega Deduction a Good Start, But More Tax Reforms Are Needed

The Federal government has unveiled a Productivity Mega Deduction, which will provide immediate expensing under Capital Cost Allowance (CCA) provisions for a broad range of depreciable property, importantly on a permanent basis, for acquisitions on or after September 15, 2026. Check out the noteworthy exclusions are listed below. This tax reform is a good start, but much more needs to be done, especially for small business owners and average taxpayers to make Canada truly competitive across our tax base.

We’re headed back to Puerto Vallarta November 23-26 and our official conference venue will be the Marriott Puerto Vallarta Resort & Spa. Booking details for your accommodation options are coming soon, and you don’t want to miss this opportunity to save 50% on conference tuition when you register by November 15 for Canada’s only top-tier multi-disciplinary conference for leading tax, accounting and financial services professionals.

Immediately following the U.S. Election, the Bitcoin hit new highs.  New volatility may be in store for investors, and for those reasons it’s important to understand the tax consequences now and keep meticulous records.  Here’s why this matters to Canadian investors:

Will the election results in the U. S. affect the Canadian economy?  It’s quite possible, as the Canada-United States-Mexico Agreement is up for renegotiation and review in 2026 and the potential for expensive new tariffs has been raised. It was just last month that Canadians could expect a solid increase in real GDP growth in 2025, followed by a levelling off in the following two years. That was the projection from Canada’s Parliamentary Budget Office report. Here’s the forecast, in the absence of significant new Trumpian policies:

As the tax year draws to a close it’s important to understand what happens when a depreciable asset is disposed of.  If that is less than the undepreciated capital cost, a terminal loss results.  A technical tax update may be in order because some of the rules are quite interesting.

As we get ready to kick off Acuity 2024 in Montreal this weekend, we’re giving you a sneak peek of what’s in store for the 2025 Acuity Conference for Distinguished Advisors! We’re headed back to Puerto Vallarta November 23-26 and you can save 50% on tuition when you register by November 15 for Canada’s only top-tier multi-disciplinary conference for leading tax, accounting and financial services professionals.

New Capital Gains Inclusion Rates Change the Game: are you prepared to help?  Learn New Year-End Tax Planning Techniques from Our Special Guest Experts with the CE Savvy Summit, featuring live event recordings from the November 6 virtual sessions. This is an opportunity to upskill your knowledge, learn from Canada’s top experts an earn 15 CE Credits before year-end. Plus, you have an opportunity to earn your Diploma in Advanced Family Tax Compliance.