Part 2 – Capital Cost Allowances
Do you look around your office and see piles of receipts that you have been meaning to deal with? Were enjoying the warm after effects of the holidays when you realized that the end of December means the coming of January and with it TAX PREPARATION TIME… Are you starting to feel a slight panic rising?
If you’re thinking that Capital Cost Allowance is what you have to give your kid every week to make his bed, relax, you have time and It’s Your Time and we are here to help.
Capital Cost Allowance are expenses that are considered capital purchases. Basically any equipment you buy for your company that costs you more than $300. Plumbing tools, computers, smart phones, canvas stretching tools, your car etc.
It’s important to track these purchases separately as they are calculated differently, and most often, to your benefit at tax time. If you are in a loss position then these are expenses that can be carried forward year to year.
Amanda Mungal who has had 5 years of experience with T1 business tax preparation will help you put your best foot forward at tax time!