CCA DIEP class 50 not being recorded in turbotax 2025?

[questionsforever]

I entered an item in Area B and checked the X in the DIEP box but in Area A it does not calculate the 100% CCA under the DIEP column at all. Why is this? Is it not true the item has to become available for use up to the end of year-end 2025? I put the date as Oct 2025 for the purchase. 

[TurboTaxAniqua · Accepted solution]

To better assist you, we do need more details.

As per the CRA, the immediate expensing incentive has the following characteristics:
An eligible person or partnership (EPOP) may deduct the full cost of designated immediate expensing properties (DIEPs) up to $1.5 million per tax year, subject to specific limitations
 

• The deduction applies only to immediate expensing property that you designated as a DIEP on the prescribed form you must file with the minister by the due date
• The deduction is available only for the year when the property becomes available for use
• The deduction is limited to $1.5 million per tax year:
• The $1.5 million may be shared among associated members of a group. Each member must file an agreement on the prescribed form assigning a percentage to one or more of them for the year
• The limit is also prorated for tax years shorter than 365 days
• If the capital cost of the DIEP is more than $1.5 million and is included in more than one CCA class, the EPOP can decide which CCA class the immediate expensing deduction is attributed to
• The deduction is limited to the amount of income earned (before deducting CCA) from the business or property for which the DIEP is used

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-6.html

Thank you for choosing TurboTax.

[questionsforever]

Yes you are right. Actually I just wanted to say that AII applies in this case up to 2027 now which eliminates the half year rule, but not DIEP which expired Dec 31, 2024.

[TurboTaxAniqua]

Thanks. As per CRA for Tax Year 2024:

Qualifying and Non-Qualifying Assets

DIEP generally includes all depreciable capital property except for long-lived assets: 

• Ineligible Classes: 1 to 6 (buildings, greenhouses), 14.1 (goodwill), 17 (roads/surface construction), 47, 49, and 51 (pipelines and electrical transmission equipment).
• Passenger Vehicles: For vehicles in Class 10.1 (costing over $37,000 before tax in 2024), you can still claim the 100% write-off if they are designated as DIEP, but note that recapture rules will apply upon sale. 

Important Rules for 2024

• $1.5 Million Limit: This is an annual limit that must be shared among associated groups of businesses or partnerships.
• Income Limitation: For individuals and partnerships, the DIEP deduction cannot exceed the income earned from the business or property for which the asset is used (it cannot be used to create or increase a loss).
• Prescribed Form: To claim the deduction, you must designate the property as a DIEP on the T2 Schedule 8 (for corporations) or Form T2125 (for individuals). 
• What property qualifies for immediate expensing? Designated Immediate Expensing Property (“DIEP”) generally includes all depreciable capital property, other than property included in Capital Cost Allowance (CCA) classes 1 to 6, 14.1, 17, 47, 49 and 51.
• The AII has been extended for qualifying property acquired after December 31, 2024, and available for use before 2030, offering a maximum first-year CCA deduction of 1.5 times the standard rate. This measure effectively suspends the half-year rule for eligible property.