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!
