I run my business out of my garage, however I can not currently operate during the winter as the garage is unheated.
This year I would like to insulate and heat the garage to allow me to run my business throughout the year. Can the costs associated with this be claimed as a business expense, and where would it be claimed?
Thanks,
-Chris
The costs you incur to insulate and add a heating system to your existing building cannot be claimed as a "Current Expenses". You will need to add the costs of both to Class 1 and claim 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...