I had an insurance claim for a piece of damaged business equipment (I am a sole proprietor). The insurance company wrote off the item (and salvaged it) and I received a payout less a deductible. I then purchased a replacement item at a higher cost.
If I understand correctly, I am to enter the lost item as a disposition (CCA, Area A, T2125), equal to the amount paid out by insurance. I then enter the new replacement item as an acquisition as usual.
However, what about the deductible? I didn't pay it outright, it was just subtracted from my insurance proceeds. Am I able to claim that amount as an expense, and if so, where?
Thank you!
As the deductible was not paid by you outright and you did receive a payout, it may be best to contact the Canada Revenue Agency (CRA) to verify if the deductible is eligible and how it would be claimed if it is. The CRA can be called at 1-800-959-8281.
Thank you for choosing TurboTax.
As the deductible was not paid by you outright and you did receive a payout, it may be best to contact the Canada Revenue Agency (CRA) to verify if the deductible is eligible and how it would be claimed if it is. The CRA can be called at 1-800-959-8281.
Thank you for choosing TurboTax.