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?   

Canadians, who leaving the country become emigrants, and have to file a final tax return as of the date of emigration must report income for the period of residency and also, a deemed disposition of their taxable assets. This can generate capital gains or losses, which can generate a balance due or in some cases, additional refunds if losses are applied to prior year gains.  There are some exceptions explained below.

Do you enjoy solving problems, working with numbers and helping others? If so, enrol in a new designation program that will help you kickstart your career, earn more as a highly qualified practitioner and achieve your potential as a confident leader.  Become a Distinguished Master Advisor by taking the new DMA Accounting Services Specialist Designation Program. 

The Dark Horses are coming:  little known tax facts and tips ordinary advisors never tell their clients about.  It makes a big difference in the after-tax result!  December 15 is the beginning of the Early Registration Deadlines for the Advanced T1 Tax Update, featuring three training options in 2023:

Did you know that in Canada, a third of people do not have dental insurance to get the dental care they need?  Starting on December 1, eligible Canadians were allowed to apply for the Canada Dental Benefit. This is the first-ever federal dental-care program, but it comes with fine print and potential auditing if incorrectly applied for.  Here’s what you need to know to tap into the program, which allows for dental expenditures to be claimed back to October 1, 2022. 

Working with both financial advisors and tax specialists can help clients give more to their communities through charity before year end.  But it’s critical for advisors to be proactive now, or time will run out to give more, tax efficiently. One common issue I’ve come across is with clients who have a non-registered investment portfolio, but are writing cheques to charities for their annual giving.

An overwhelming majority of Knowledge Bureau poll respondents, 93%, believe investors should harvest tax losses in 2022 to recover taxes paid on capital gains declared in the past three years.  It’s an interesting question, however, because in some cases it might be the right thing to do; in others not.  Most professionals reflected this sentiment in their comments.