2016-12-30 00:00:00Finance and AccountingEnglishDiscover when you need to claim depreciation on your long-term assets in the form of a capital cost allowance deduction.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Accountants-Determine-Capital-Cost-Allowance-Tax-Deductions.jpghttps://quickbooks.intuit.com/ca/resources/finance-accounting/when-to-claim-capital-cost-allowance/When to Claim Capital Cost Allowance

When to Claim Capital Cost Allowance

0 min read

Capital cost allowance is a tax deduction you claim over a span of several years for your depreciable property’s cost. This property is a long-term asset that becomes obsolete over time, such as furniture, buildings, or equipment, that you utilize in your professional or business activities. It is illegal to deduct the total cost of depreciable property when you compute your professional or net business income for the year that you bought the property.

Instead, you are able to deduct the total cost of these business properties over the lifetime of the equipment as a capital expense. Keep in mind the differences between current and capital expenses. Unlike capital expenses, current expenses refer to short-term, ordinary maintenance expenses, while capital expenses add considerable value in relation to property.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Dealing With Capital Gains Tax When Selling Your Business

If you sell your business, you may have capital gains, and by…

Read more

Helping Businesses Qualify for Tax Deductions for Charitable Donations

Consumers want to patronize businesses that show a lot of social responsibility,…

Read more

Understanding Capital Gains And Losses

If you dispose of a capital asset, you typically incur a gain…

Read more