Can I write-off leasehold improvements?
Allan Madan, CA
Question:
I recently moved into a new building and was required to cover the cost of making the new space suitable for my purposes. This included purchasing new lighting, installing new flooring, internal walls and wall coverings. Is it possible to write off these expenses from my business?
Answer:
According the the Income Tax Act, any improvement made on leased property that cannot be removed at the end of the lease are considered leasehold improvements. These items cannot be deducted in the period they are purchased but instead, are capitalized as a Class 13 asset and will be written off over the lease term.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
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.
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