Solved: Our new (small) corporation invested 2500.00 in a ...

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New Member

Our new (small) corporation invested 2500.00 in a gic as security for a new credit card, can this be claimed as a business expense?

If it can be claimed as a business expense, under which section (and gifi code) would it fall under? Thanks so much in advance for any helpful answers, I'm really stumped on this one.

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New Member

Our new (small) corporation invested 2500.00 in a gic as security for a new credit card, can this be claimed as a business expense?

As it is an investment, this is not an expense, but an asset, treated the same way for accounting (and tax) purposes as cash in a bank account. Any interest earned on the GIC has to be reported as income.

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Highlighted
New Member

Our new (small) corporation invested 2500.00 in a gic as security for a new credit card, can this be claimed as a business expense?

As it is an investment, this is not an expense, but an asset, treated the same way for accounting (and tax) purposes as cash in a bank account. Any interest earned on the GIC has to be reported as income.

View solution in original post