Part 1: How to Prepare Business Taxes for Self-Employed Individuals Watch Video
Allan Madan, CPA, CA
Find out how to complete form T2125, the Statement of Business Activities Read More…
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ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Hi
How do you determine how to claim business expenses (self employed). IE. Within the year verse CCA over multiple years. Are there any rules for “Just Write it off” base on a min $ amounts to write off at %100 within the year. I’ve been told that there is a $200, a $500, $1,000, and that there is also no such rule (IE.. USB sticks, small computer parts, staplers, must be depreciated via CCA)
Your thoughts?
Hi Colin, an asset is depreciated over time, according to Capital Cost Allowance Rates. However, an expense is deducted in the year incurred. The difference between the two is that an assets lasts longer than 1 year. For example, a computer (asset) is depreciated at a rate of 55% per year, whereas a mouse or cable purchased is fully deducted in the current year.