What is EPOPs

It is an "Eligible Person or Partnership" for the purposes of allocating the 1.5 Million available for the Accelerated Capital Cost Allowance.  See Area G on the T776CCASummary.  It is used to allocate the immediate expensing limit.  If this is a rental property, you might want to confirm that you have entered the asset correctly and that it actually does or does not qualify for immediate expensing or accelerated CCA.

When you enter an asset, you have to indicate whether it is eligible for "immediate expensing of eligible properties".  There's been a similar provision for some time with respect to accelerated depreciation of some assets.  Even if an asset is eligible for immediate expensing or accelerated depreciation, there may be times when it is more beneficial over the long run to take the regular depreciation.

Jo

Hi JR,

I am still confused if this can be used for personal vehicles for business or just land and buildings? 

Thanks very much for always helping out everyone and appreciate your kindness.

Cheers.

HB

Hi Janis,

Thanks very much for always helping out everyone and appreciate your kindness. I am still confused how to use this.

Thank you.

Cheers,

EPOP is the short form for "Eligible Person or Partnership".  The question in Area G on a CCA schedule is simply asking if you are associated with any other persons or partnerships - if you are, then the group of eligible persons or partnerships have to share a maximum limit of 1.5 million for assets qualifying for immediate expensing.  I expect the answer to that question would usually be "no".

Whether or not an asset can be immediately expensed is an entirely different question.

The immediate expensing is available for property included in most depreciable classes except for 1 to 6 (in other words, buildings cannot be immediately expensed, and certain other classes that have long lives (14.1, 17, 47, 49 and 51).  The property also has to be new (not used) and the immediate expensing is only available in the year in which the assets is put into use.  Also, for individuals, it is restricted to the amount of income earned from the business in which the asset is used.

So, basically a vehicle used in a proprietorship which has been purchased by the proprietorship and is new would qualify.  If the asset is not used 100% in the business (a personally owned vehicle used partly for business purposes but not 100%) it would not qualify for immediate expensing.

Hi, HB.

The rules of the road state that Classes 1 - 6, 14.1, 17, 47, 49, and 51 are NOT allowed to do the immediate expensing property thing.  Which means that a vehicle would definitely be allowed for this.deduction.  However, you mention a "personal vehicle for business", which raises queries.  If a person purchases a vehicle which he/she uses for both business and personal use, I'd say "NO".  CCA on a personal vehicle used in business (either a T777 or a T2125) is based on the percent of time the vehicle is used for business.  For example, a vehicle which cost $30,000 would be a Class 10 vehicle which would - in the first year - have a CCA of 15% (half the normal 30%) or $4,500.  However, if said vehicle is used only 50% for business, the deductible CCA would be $2,250.  Only if a vehicle is used more than 90% of the time for business would I even think of going the immediate expensing route, and then I'd still be cautious.

In any event, do NOT think an employee would qualify for this deduction - has to be a sole prop or a partnership.

Hope this helps.

Jo.

This makes more sense to me now. Thanks very much for your help Jo! Stay blessed always