I bought a Turtle Bus last year for $850 - which I highly recommend! Can I claim the entire amount on my taxes this year? I do my own taxes and have never had such a large purchase.
Thank you!!
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I bought a Turtle Bus last year for $850 - which I highly recommend! Can I claim the entire amount on my taxes this year? I do my own taxes and have never had such a large purchase.
Thank you!!
Yes, absolutely claim the whole thing! You can claim it under equipment.
Actually an item like that since you will get continual use out of it should be put in the Capital Cost Allowance CCA chart meaning you can only claim part of the cost per year.
I've never done the CCA thing. What are the basics about it? I claimed my quad stroller and 8 in 1 play structure last year under my toys and supplies. I only paid $525 for both though.
Really, almost everything We buy is a continual usage item so I'm assuming there's a minimum for this? Can anyone explain :)
As part of the T2125 form - see link above to get to it easily. There is a section for CCA - you put in the total price in box one and then just follow the math in each box even if it makes no sense to you - it does when you think about it at the end but not when you are doing it. Basically because only 50% of the total price is claimable in the first year so you end up with 20% of half the cost of the item for year one but then in future years it is 20% of the whole remaining amount ( a good tax strategy is to buy a lot of stuff in Nov/Dec instead of waiting till Jan). The boxes then give you the amount to transfer to the tax form and the amount you will use next year so keep that figure - ie write it down somewhere for easy access.
Anything over $500 falls under capital cost allowance. I was only able to claim 20% on my Runabout stroller the first year,and then it depreciates annually.
Thanks! That explains why I was able to claim my stuff 100%....I bought used, stroller was $425 and the structure was $100.Quote:
Originally Posted by Busy ECE mommy
I'll have to keep the cca in mind if I ever buy anything expensive!