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posted Apr 7, 2025 5:40:34 PM

Capital Cost Allowance, DIEP and AII on a utility vehicle

HI, 

We purchased (financed) a Utility Vehicle for self-employment business in 2025 for the amount of $25,366.64. 

How do I know if its eligible to the DIEP and AII as it makes a big difference in the return.

When I click Yes to DIEP the return the CCA claims the full amount of vehicle. 

If I click no to DIEP, it asks me about AII , If I click no then the CCA is  $4299.64.

If I click no to DIEP, Yes to the AII, then the CCA is $8599.29.

Thank you

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1 Replies
Moderator
Apr 11, 2025 4:22:49 PM

The two main things that make an asset eligible for Designated Immediate Expensing Properties (DIEP) are:

  • It's made available for use before 2025.  
  • it's not in the following asset classes: 1 to 6, 14.1,17, 47, 49 and 51.

This CRA webpage has more details: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-2.html#DIEP

 

This CRA webpage has more info on the Accelerated investment incentive:  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/accelerated-investment-incentive.html

 

If you are unsure if this asset qualified for DIEP or AII, 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