CRA update on Budget 2021 immediate expensing proposal

The CRA has shared with us the following update on the Budget 2021 proposal which would allow for the immediate expensing of certain assets:

“On April 19, 2021, the Department of Finance tabled the annual federal budget, which contained a proposal regarding immediate expensing of certain assets. In addition to the enhanced CCA deductions available under existing rules, such as the full expensing for classes 43.1, 43.2, and 53, the budget proposed to provide temporary immediate expensing for certain property acquired by a Canadian-controlled private corporation. As of December 31, 2021, the legislation to support this proposed measure is pending. The Canada Revenue Agency will only allow claims related to immediate expensing once supporting legislation has been introduced. Taxpayers are advised to request an adjustment to their return once the supporting legislation receives Royal Assent.”

The CRA has indicated that they will update their What’s New for Corporations webpage once draft legislation is made available to the public.