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About accelerated CCA calculations/Accelerated Investment Incentive (AIIP)

What are accelerated CCA calculations for?

In the 2018 Federal Fall Economic Statement, the federal Minister of Finance introduced the Accelerated Investment Incentive (AIIP). This measure allows Canadian businesses to write off a larger share of the cost of newly acquired depreciable assets (tangible and intangible) in the year the investment is made.

Only assets acquired and available for use after November 20, 2018 may qualify as AIIP.

What modules include accelerated CCA calculations?

T1, T2, T3, and FX modules.

What forms include accelerated CCA calculations?

  • T2125
  • T2042
  • T1163-T1273
  • T776
  • T1163
  • T2121
  • T776 and Resource
  • s8class
  • s8lease

What do preparers need to do?

The preparer answers “yes” or “no” to the question “Addition qualifies as an Accelerated Investment Incentive Property (AIIP)” on the form and inputs the acquisition date.

ProFile calculates the CCA for AIIP for acquisitions after November 20, 2018 or for non-AIIP acquisitions, acquisitions on or prior to November 20, 2018.

Example

The following example features the T2125 form.

The question “Addition qualifies as an Accelerated Investment Incentive Property (AIIP)” defaults to the “No” response on the form:

User-added image

1. Double-click on the response or press the <SPACE> bar to select “Yes”.

2. Enter the “Acquisition date/Start of lease” information.

In this example, the information transfers to the T2125 CCA form as its own line:

User-added image

ProFile grosses up the amount on the new line in order to start the calculations.

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