topic Re: How do I write off a financed piece of equipment in Canada? in Self-employed

How do I write off a financed piece of equipment in Canada?

thorndalelawns18 — Tue, 04 Feb 2025 18:49:27 GMT

How do I write off a financed tractor? I purchased it for landscaping. Can I enter in the full amount, or just the financing payments for the year?

Re: How do I write off a financed piece of equipment in Canada?

TurboTax_Susan — Tue, 04 Feb 2025 19:19:10 GMT

You generally can't write off the full amount for a vehicle or expensive piece of equipment in just one tax year. You would need to claim your tractor in the capital cost allowance (CCA) section as a Class 10 addition, and then claim a portion of the cost yearly over the life of the machine.

This CRA webpage has more information about Capital cost allowance (CCA): Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide – Chapter 5 – Capital cost allowance (CCA)

Re: How do I write off a financed piece of equipment in Canada?

thorndalelawns18 — Tue, 04 Feb 2025 19:31:00 GMT

I cannot find the Class 10 category. Does that cover vehicles? I do not farm to be clear. It is used for landscaping.

Re: How do I write off a financed piece of equipment in Canada?

TurboTax_Susan — Tue, 04 Feb 2025 20:32:09 GMT

Yes, class 10 is for vehicles - a tractor can be any kind of tractor - farm tractor, tractor for pulling freight containers, lawn & garden tractors, etc... In the vehicle expenses section you'll be asked to pick a CCA class a few pages in.

Re: How do I write off a financed piece of equipment in Canada?

thorndalelawns18 — Tue, 04 Feb 2025 21:04:12 GMT

One last question. It's asking me to submit the total cost of the vehicle before taxes. Do I enter in the Full amount (say $10,000) or Only what financing allowed me to pay for this past year ($5000 for example)?

Re: How do I write off a financed piece of equipment in Canada?

TurboTax_Susan — Tue, 04 Feb 2025 21:14:41 GMT

You would enter the full amount.

Re: How do I write off a financed piece of equipment in Canada?

thorndalelawns18 — Tue, 04 Feb 2025 21:31:31 GMT

Thank you very much