Can you stack Eligible Capital Property Deduction (Class 14.1) and Incorporation and Reorganization Costs?
Yes. Eligible Capital Property Deduction (Class 14.1) and Incorporation and Reorganization Costs can be combined. They fund different things, so the trick is simple: apply to each separately and never claim the same dollar twice.
Eligible Capital Property Deduction (Class 14.1)
Deduct the cost of intangible business assets like customer lists, licenses, franchises, and goodwill. 5% per year declining balance: helps offset the cost of purchasing a business.
Incorporation and Reorganization Costs
Legal, accounting, and other professional fees for incorporating, restructuring, or rolling assets into a corporation are deductible. Often a five-figure deduction in year one of a corp.
How to stack them
- 01Confirm you meet each program's eligibility on its own. Eligible Capital Property Deduction (Class 14.1) and Incorporation and Reorganization Costs are assessed separately.
- 02Apply to each program through its own application. There is no combined form.
- 03Allocate distinct costs to each program. You cannot claim the same dollar of expense under both, but you can fund different parts of the same project.
- 04Track both deadlines and keep the paperwork separated, so each claim stands on its own.
Stacking rules vary by program and change over time. Confirm the current rules with each program, or take the quiz and we will flag the combinations you qualify for.