CRA confirms that a long-term project election under s. 13(29) need only be filed once
Where a major construction project (other than of a rental building) is expected to extend beyond three years, the adverse impact of the available-for -use rules on potential capital cost allowance claims in the third and subsequent years often can be ameliorated by making a s. 13(29) election. The wording of the election form (which likely will be amended in this regard) seems to suggest that the election must be made annually, starting generally with the third year.
CRA has clarified that this is incorrect – the election need only be made once (generally with the return for the project’s third taxation year).
Neal Armstrong. Summary of 1 October 2020 Internal T.I. 2019-0821651I7 under s. 13(29).