DIEP agreement

[MFedmonton]

Do I have to do the DIEP agreement? I'm a landlord and sold the rental property in 2023. Does DIEP applies to me?

[Geo123]

Hello MFedmonton,

DIEP is not mandatory, it is optional

FYI DIEP : 

Immediate expensing incentive

The immediate expensing incentive has the following characteristics:

    An eligible person or partnership (EPOP) may deduct the full cost of designated immediate expensing properties (DIEPs) up to $1.5 million per tax year, subject to specific limitations
    The deduction applies only to immediate expensing property that you designated as a DIEP on the prescribed form you must file with the minister by the due date
    The deduction is available only for the year when the property becomes available for use
    The deduction is limited to $1.5 million per tax year:
        The $1.5 million may be shared among associated members of a group. Each member must file an agreement on the prescribed form assigning a percentage to one or more of them for the year
        The limit is also prorated for tax years shorter than 365 days
        If the capital cost of the DIEP is more than $1.5 million and is included in more than one CCA class, the EPOP can decide which CCA class the immediate expensing deduction is attributed to
    The deduction is limited to the amount of income earned (before deducting CCA) from the business or property for which the DIEP is used

EPOPs with less than $1.5 million of eligible capital costs can't carry forward any unused annual immediate expensing limit.

As a result of this new CCA incentive, columns 4, 6, 8, 9, 10, 11 and 12 have been added to Area A of your form. For more information on how this could affect your CCA calculations, go to Expansion of the Eligibility for Tax Support for Business Investments.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-6.html