Has anyone heard of training expenses for a startup small business being denied as they might qualify for capital expenses? If so, which class would they go under? Thank you.
You are correct in saying that some training courses are considered to be capital in nature. In essence, an expense for a course which enables one to maintain, update, or upgrade an existing skill or qualification required for one's business or profession are deductible; an expense for a training to acquire a new skill is capital in nature. The example given is that of a doctor who is a GP; training to be a specialist would be capital in nature, while training in the latest techniques used by GPs would be a normal deduction.
One source I have found says that this is an "eligible capital expenditure"; as of 1st January, 2017, that would be classified under Class 14.1at a rate of 5%.
Hope this helps.
I found the information on capital vs regular expense in the Wolters Kluwer "Preparing Your Income Tax Returns", which I purchase annually. Then I googled "Canada training courses as capital costs" and got this link which referred to the training as an eligible capital expenditure and gave me the CCA class: