AIIP rules for Canada Depreciation Method

3 months ago 29

Currently, an enhanced first-year CCA is disposable nether the AIIP rules. The AIIP was introduced successful 2018 and is expected to beryllium disposable for the assets acquired and became avaiable for usage (AFU) by the extremity of 2028. The AIIP regularisation applies lone to the assets acquired successful the year. The half-year-rule does not use for the assets that suffice arsenic AIIP. Instead, for astir of the assets, the archetypal twelvemonth CCA is accrued arsenic follows:

For example,Straight-line Class13,14
if a patent has an acquisition worth of $100k and has a utile beingness of 5 years, past the depreciation disbursal for the twelvemonth volition beryllium $100k/5 years = $20,000

AIIP rules:
Assets became AFU by 2023,The archetypal twelvemonth CCA adjacent to 3 times the mean first-year CCA (the mean first-year CCA means the CCA with the half-year rule)
the depreciation disbursal volition beryllium $30,000 $20,000 $20,000 $20,000 $10,000

Assets became AFU betwixt 2024 and 2027,The archetypal twelvemonth CCA adjacent to 2 times the mean first-year CCA (the mean first-year CCA means the CCA with the half-year rule)
the depreciation disbursal volition beryllium $20,000 $20,000 $20,000 $20,000 $20,000

Assets became AFU aft 2027,The archetypal twelvemonth CCA adjacent to the mean first-year CCA (the mean first-year CCA means the CCA with the half-year rule)

the depreciation disbursal volition beryllium $10,000 $20,000 $20,000 $20,000 $20,000

However utile twelvemonth is inputted by user.
How tin I acceptable Depreciation Method for Class13,14 with AIIP rules if I don't cognize the utile year.

Read Entire Article