A major objective of capital cost allowance for tax depreciation is to
A) reduce the amount of depreciation expense claimed for income tax purposes.
B) assure that the amount of depreciation for income tax and book purposes will be the same.
C) help taxpayers achieve a faster write-off of their capital assets.
D) require taxpayers to use the actual economic lives of assets in calculating tax depreciation.

Question

Quizplus · Accepted Answer

The major objective of capital cost allowance for tax depreciation is to allow taxpayers to achieve a faster write-off of their capital assets. This is because assets typically lose value over time and will eventually need to be replaced or upgraded, and allowing for an accelerated write-off through tax depreciation can provide a tax benefit to businesses and individuals.

A Major Objective of Capital Cost Allowance for Tax Depreciation