Are POS system hardware like Square a business expense or Capital Cost? I know the fees and potentially receipt paper are business expenses but is the physical system? If they are business expenses, which section do they fall under?
Systems software for computer hardware or data-processing equipment is considered capital expenses which fall into class 10 with a capital cost allowance (CCA) rate of 30%.
This means that if you spent $600 on software in this category, you may write off $180 for the year of purchase. If you dispose of the software before claiming all of its capital cost, you may write off a portion of the unclaimed CCA.
To know more about computer software expenses, please visit this TurboTax article: Computer Software Deductions for Business Owners.
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