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New Member
posted Feb 4, 2025 10:49:27 AM

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

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?

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6 Replies
Moderator
Feb 4, 2025 11:19:10 AM

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)

 

 

New Member
Feb 4, 2025 11:31:00 AM

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

Moderator
Feb 4, 2025 12:32:09 PM

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.

New Member
Feb 4, 2025 1:03:33 PM

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)?

Moderator
Feb 4, 2025 1:14:41 PM

You would enter the full amount.

New Member
Feb 4, 2025 1:31:31 PM

Thank you very much