building improvement expenses for new home business?

[Jester9661]

I started a business out of my home in 2019.  In order to run the required equipment, I had to upgrade the electrical wiring in the garage.  The upgrade was only required for the business, not for home/personal use.

Where do I enter this expense in Turbo Tax (Home & Business) and/or which tax form/line?

Thanks,

-Chris

[TurboTaxKim]

You are not able to claim the upgrading of wiring as a "Current Expense", you will need to add the cost of the wiring upgrade to Class 1 and claim it as a "Capital Expense". 

When you do construction or major renovations to a capital property that improves that property, you can deduct the cost over a period of several years. This deduction is called capital cost allowance (CCA), commonly called depreciation. 

These following links explain the difference between current and capital expenses and explain how to enter both types of expenses on your tax return.

• How do I enter my rental income and expenses in TurboTax?  https://turbotax.community.intuit.ca/community/other-income/help/how-do-i-enter-my-rental-income-and...
• CRA Current or Capital Expenses: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/current-expense...
• CRA Capital Cost Allowance for Rental Property: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/capital-cost-al...