DIEP in T2

Is Immediate Expenses under CCA is optional or mandatory.

As I have bought the assets in 2022 and qualified as DIEP but I want to claim simple CCA. In tab of Schedule 8 Assets and in current assets I opt the option No in DIEP and AIPP but it gives error to override. If choose to opt in Schedule 8 Claim a different amount of CCA as Yes and choose the amount as I want it will not update my UCC value at the end of the year. Please guide

Go to the form S8Claim.
Scroll down to the section that says “Immediate Expensing Incentive available to CCPCs”
Check off “Manually allocate immediate expensing limit to each DIEP in S8Asset”.
Checking the Manually allocating…" This does not show a diagnostic message for me but it could be that I neutered that message a while ago (never show this message for any client).

Then go to the S8Asset form and select the relevant asset pool.
Scroll down to the Immediate expensing section
Delete the amount in line g - "IEL for this asset (if terminal loss or recapture enter 0)

That should adjust your CCA calculation to simple CCA without having any over-rides.

Personally, I’m not claiming much Immediate expensing of assets unless the client is over their $500k small business limit… and especially not if the equipment is financed and payments are being made.

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Immediate expensing is a good option for select situations but probably not good for most situations. I can’t see me using the option much if at all for my clients.