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What property qualifies for immediate expensing? Designated Immediate Expensing Property (“DIEP”) generally includes all depreciable capital property, other than property included in Capital Cost Allowance (CCA) classes 1 to 6, 14.1, 17, 47, 49 and 51.

You cannot deduct the cost of the property when you calculate your net rental income for the year. However, since these properties may wear out or become obsolete over time, you can deduct their cost over a period of several years. The deduction is called capital cost allowance (CCA).

Rental expenses you can deduct advertising. insurance. interest and bank charges. office expenses. professional fees (includes legal and accounting fees) management and administration fees. repairs and maintenance. salaries, wages, and benefits (including employer's contributions)

You can deduct part of your maintenance costs such as heating, home insurance, electricity, and cleaning materials. You can also deduct part of your property taxes, mortgage interest and capital cost allowance (CCA).

The key here is depreciating asset. An asset that loses value over time or through use. As we all know, vehicles lose value for both these reasons. As long as the vehicle is used for work and you can prove it, you should be able to claim CCA.

Completing your tax return Use the back of Form T777, Statement of Employment Expenses, to calculate your CCA claim. Enter the amount you can deduct from the Total expenses line (9368) of Form T777 on line 22900 of your return.

Immediate Expenses, on the other hand, are one-time costs that are necessary for day-to-day business operations and are not expected to provide long-term benefit.

What property qualifies for immediate expensing? Designated Immediate Expensing Property (“DIEP”) generally includes all depreciable capital property, other than property included in Capital Cost Allowance (CCA) classes 1 to 6, 14.1, 17, 47, 49 and 51.