So I'm tired of paying my accountant $3,000 for a relatively simple corporate tax return, and have decided that next year I will attempt to file my own corporate taxes using TurboTax Small Business Corporate, which costs $250.
I am pretty good with numbers, and should not have a big problem doing this, but am unclear about Capital Cost Allowance (Equipment Depreciation).
Now as I understand it, my truck falls into Class 38, which can depreciate at a maximum rate of 30%. So, can a guy depreciate this equipment by 30% every year until it hits zero?
Would the trailer also be included in Class 38?
Could repairs and maintenance be added to the value of the vehicle?
I know it's a long-shot posting this here, but whatever...
Depreciation usually only is allowable over a certain number of years, depending on the asset. The principle being that you replace it at the end of depreciation.
Trailers may or may not be included. Read the legislation.
Repairs and maintenance are deductibles...not added value.
I didn't think repairs could be added to value now that I think about it, since they are already being calculated as a business expense...
Basically I need clarification on Class 38 equipment, which the truck does fall under. The trailer I'd have to clarify the class, but trailers can depreciate as well here...
Doing a quick Google search still leaves my unclear.
I'd probably be best to find a Canadian Tax Forum for an answer to such a specific question...
I do believe they make this somewhat complicated, and hard to find easy answers for, as there are a whole lot of accountants that want to keep the system exactly as it is... so they can buy a new BMW every year by charging individuals like me thousands for what should be a relatively simple task.
I wonder if calling Revenue Canada would give me the answers, or if they'd just tell me to fuck off and ask an accountant...
Oh well, enough thinking about that for now... Doesn't have to filed until next year anyhow.
Now I need to run to the beer store so I can buy some magical brew that helps me forget things like tax issues and tax time... ac_drinks
In general, ANY goods purchased for business use can be depreciated, or deducted in full, depending on what they are
The depreciation rate for said item would need to be identified
Possibly our resident accountant might have assisted you, but you blew that :wink: (see 2 posts above)
This question is so specific, I doubt Seoul would even be able to answer it... Unless he's an Accountant.
I have always prepared my own personal income tax filing on paper, with ease, and I rarely get it wrong. So it's not like I cannot crunch some numbers.
Corporate shit adds complexity... I've never used something like TurboTax before, but their 'Corporate Edition' costs $250... There must be some kind of help along the way with such a program, if you're paying $250 for it, like drop-down selections for various business scenarios, with help and tutorials built in...
If not, why not just attempt to paper file my corporate also, for free... Old School!
Quote from: "Chuck Bronson"
I am pretty good with numbers, and should not have a big problem doing this, but am unclear about Capital Cost Allowance (Equipment Depreciation).
Now as I understand it, my truck falls into Class 38, which can depreciate at a maximum rate of 30%. So, can a guy depreciate this equipment by 30% every year until it hits zero?
Would the trailer also be included in Class 38?
Could repairs and maintenance be added to the value of the vehicle?
I know it's a long-shot posting this here, but whatever...
I hire someone to do my business taxes, I don't do my own, but I think you can. I do take advantage of depreciation on my truck and machinery. I'd have to look into it to know for sure.
I'm sure I can do it, but no doubt Canada makes it unnecessarily difficult, as to keep the accountants employed!
Quote from: "Chuck Bronson"
Don't get me started. Our tax code is so unnecessarily complicated. I have discussed this with the Seoul brother. We would like to see it so simplified half the employees at CRA would need to get real jobs.