I renewed my vehicle license/registration in 2020 for 2 years (total $240); can I report the total amount $240 (and report nothing in 2021 tax year) here, or just 1 yr?

[SandraWWoodbridge]

Unless you are a Farmer, fisher, or a self-employed commission agent, you must use the accrual method of accounting when reporting to the CRA. That means if you have paid your license/registration fees for this tax year and the next tax year, you would only claim the portion of the expense for this year on your tax return. You would claim the rest in the next tax year. Example: If you paid $240 for this year and next year, you would only claim $120 as an expense this year, and the other $120 next year.

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