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.
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. The LT is levied on the vendor of the vehicle, aircraft or vessel. The LT applies to vehicles, aircraft and vessels where the agreement to purchase or lease was entered into on or after January 1, 2022 and where delivery takes place on or after August 31st, 2022. This article discusses the rules that apply to vehicles. Similar rules apply to aircraft and vessels.