DFK Tax Digest
2022 Issue Four
December 1, 2022
In this DFK Tax Digest – 2022 Issue Four:
- Summary of Designated Immediate Expensing Property (“DIEP”) Rules – On April 19, 2021, the government announced new rules allowing for immediate expensing (100% write off in the year of purchase) of up to $1.5 million of capital asset purchases per year. These rules finally became law in June 2022, allowing CRA to start assessing immediate expensing claims.
- The New Interest Regime – Impact of Interest and Financing Expenses Deductibility Limitations for Owner Managed Businesses – On February 4, 2022, the Department of Finance released sweeping draft legislation that would limit the deduction of interest and financing expenses to a fixed ratio that comes into force for taxation years commencing after October 1, 2023.
- Canada’s New Luxury Tax Comes into Effect September 1, 2022 – The Luxury Tax (“LT”) is a new tax on the sale of road vehicles and aircraft where the consideration payable is greater than $100,000. The LT also applies to marine vessels where the consideration is over $250,000.