I purchased a PC for my partner to start her small business. She paid me for it after she got paid for her first work. How can she claim it if the invoice is at my name?

[alvaro-bataller-]

Since my common-law partner is not very tech-savvy and didn't have enough money to make these purchases we came to the following agreement:

I would purchase all the PC parts and software needed for her to be able to start her small business. And in exchange, she would pay me back after she was able to earn this money with her freelance work.

She does 3D Architecture Visualization so she requires powerful computers to generate the 3D images and good storage to save her projects.

I purchased for her a total of around 10,000 dollars including a PC workstation, rendering computer and a storage device with hard drives so she could store her projects.

At this point she has paid me back for everything, but how can she claim these expenses if all the invoices for everything I purchased for her are all at my name?

[TurboTaxJennifer · Accepted solution]

The invoices can be in your name since you were the person who originally purchased them. Your situation is more like a loan that was paid off but the goods were received by you first.

Shouldn't be any issues with your partner's claim for these expenses but, just for the sake of having the proper paperwork in case CRA ever requests it, consider writing up a bill of sale from you to your partner. Something simple that outlines the fact that you paid for the items up front and were reimbursed by your partner in full. (No tax consequences for you as you didn't make any profit.)