If you claim the tools as a business expense:
- There is no cap on the expense.
- Tools are considered to be of long-lasting value. Therefore, they are entered as Capital Assets (in the CCA section) and are depreciated over time. How much time and at what rate depends on the tool type and cost.
Go through Easy Step mode.
- Go to the business profile, Work your way through expenses.
- You will reach the "Fixed Assets" section.
- Continue browsing through the interview till you reach the T2125 Opening Balances for CCA (Other) page
- You can select a CCA Class in which your tools fall in, and enter the value of your tools/equipment there. The tools will be depreciated at the CCA rate relating to the class.
If you need to find which class is your tool, go to the Canada Revenue Agency (CRA) webpage: Capital cost allowance (CCA) classes
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