So, you need to purchase something for your business. Maybe it’s some new equipment or a vehicle of some sort. Maybe it’s a building! You know what you need, but what you’re not sure of is how to go about deducing the expense for tax purposes. Do you write off the full cost of that purchase in the year you bought it? How do you know how much you can write off? If you’re not sure, keep on reading to learn about Capital Cost Allowance.
Any asset you purchase for your business that costs more than $200 and is depreciable, is claimed on your tax return through Capital Cost Allowance.
In short… No, you don’t get to write off the full amount of an asset in the year you buy it. However, you do get to write off something. How much you can write off is a percentage decided by the government. This percentage is based on which the class the asset belongs to.
This can get a little bit complicated, so we are breaking it down for you using candy! (Doing heroes work and making accounting fun over here).
Watch the video below to learn more. If you enjoy be sure to like it and subscribe to our channel for more fun and informational videos every single week!
It is always a good idea to contact your advisor to discuss your personal or business finances. We are always happy to help our clients with business and tax planning. If you’re in need of an accountant, check out our services page or book a “Get to Know You” meeting with us by clicking here!
