Income Tax Regulations — 1100
1100 Immediate expensing (0.1) For the purposes of paragraph 20(1)(a) of the Act, a deduction is allowed in computing an eligible person or partnership’s income for each taxation year equal to the lesser of (a) the eligible person or partnership’s immediate expensing limit for the taxation year, (b) the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year, and (c) if the eligible person or partnership is not a Canadian-controlled private corporation, the amount of income, if any, earned from the source of income that is a business or property (computed without regard to paragraph 20(1)(a) of the Act) in which the relevant designated immediate expensing property is used for the eligible person or partnership’s taxation year. Undepreciated capital cost — immediate expensing (0.2) Before computing any other deduction permitted under this Part and Schedules II to VI, the amount of any deduction made under subsection (0.1) by an eligible person or partnership in respect of a designated immediate expensing property of a prescribed class shall be deducted from the undepreciated capital cost of the particular class to which the property belongs. Expenditures excluded from paragraph (0.1)(b) (0.3) For the purposes of paragraph (0.1)(b), in respect of property of a class in Schedule II that is immediate expensing property of an eligible person or partnership solely because of subparagraph (c)(i) of the definition immediate expensing property in subsection 1104(3.1), amounts incurred by any person or partnership in respect of the property are not to be included in determining the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year (before making any deduction under this Part for the taxation year) of property that is designated immediate expensing property for the taxation year if the amounts are incurred before April 19, 2021 (if the eligible person or partnership is a Canadian-controlled private corporation) or before 2022 (if the eligible person or partnership is an individual or Canadian partnership), unless (a) the property was acquired by an eligible person or partnership from another person or partnership (referred to in this paragraph as the “transferee” and the “transferor”, respectively) (i) if the transferee is a Canadian-controlled private corporation, after April 18, 2021, or (ii) if the transferee is an individual or a Canadian partnership, after December 31, 2021; (b) the transferee was either (i) the eligible person or partnership, or (ii) a person or partnership that does not deal at arm’s length with the eligible person or partnership; and (c) the transferor (i) dealt at arm’s length with the transferee, and (ii) held the property as inventory. (1) For the purposes of paragraphs 8(1)(j) and (p) and 20(1)(a) of the Act, the following deductions are allowed in computing a taxpayer’s income for each taxation year: Rates (a) subject to subsection (2), such amount as the taxpayer may claim in respect of property of each of the following classes in Schedule II not exceeding in respect of property (i) of Class 1, 4 per cent, (ii) of Class 2, 6 per cent, (iii) of Class 3, 5 per cent, (iv) of Class 4, 6 per cent, (v) of Class 5, 10 per cent, (vi) of Class 6, 10 per cent, (vii) of Class 7, 15 per cent, (viii) of Class 8, 20 per cent, (ix) of Class 9, 25 per cent, (x) of Class 10, 30 per cent, (x.1) of Class 10.1, 30 per cent, (xi) of Class 11, 35 per cent, (xii) of Class 12, 100 per cent, (xii.1) of Class 14.1, 5 per cent, (xiii) of Class 16, 40 per cent, (xiv) of Class 17, 8 per cent, (xv) of Class 18, 60 per cent, (xvi) of Class 22, 50 per cent, (xvii) of Class 23, 100 per cent, (xviii) of Class 25, 100 per cent, (xix) of Class 26, 5 per cent, (xx) of Class 28, 30 per cent, (xxi) of Clas