What is designated immediate expensing property?

Immediate expensing property (IEP) is property acquired by an eligible person or partnership (EPOP) and includes all property subject to the capital cost allowance (CCA) rules, but excludes property included in the following CCA classes (generally long-lived asset classes):

• Classes 1 to 6 (e.g., buildings, greenhouses, structures);
• Class 14.1 (e.g., goodwill);
• Class 17 (e.g., surface construction such as roads);
• Class 47 (e.g., transmission or distribution equipment and structures used for transmission or distribution of electrical energy);
• Class 49 (e.g., pipelines, including monitoring devices, valves, etc. used for the transmission of oil and gas); and
• Class 51 (e.g., pipelines, including control and monitoring devices, valves, etc. used to distribute natural gas).

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Designated immediate expensing property (DIEP) refers to a property category eligible for accelerated tax depreciation. This means that business owners can claim the full cost of the property as a deduction in the year it was purchased, rather than spreading the deduction over the useful life of the property.

DIEP includes certain types of depreciable property used primarily for manufacturing or processing goods for sale or lease, including machinery, equipment, and buildings.

For more information please see Canada Revenue Agency(CRA)  

Expansion of the Eligibility for Tax Support for Business Investments

For more information please see our TurboTax FAQ.  

Accelerated Investment Incentive

 

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While I have read everything I could find about DIEP designation eligibility, I cannot find anything specific to the situation in question. A friend asked my opinion on his 2022 T1, and I saw that the preparer has claimed an off road vehicle as DIEP. With the vehicle being used just to access the occasional off-road sites for my friend's construction and renovation business, and by occasionally I mean about 50% of the time him driving it, I do not see it qualifying for DIEP in 2022. What would be your interpretation?

@sailingmonica If you are unsure if this asset qualified for DIEP, you can contact the Canada Revenue Agency (CRA) and confirm it with them. 

 

If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency