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Actually if you have more expenses than income which is commmon in the first couple years the amounts are carried forward to be subtracted in a future year but doing with the CCA also works too.
I was also told it has to do with how long the item will be used in the sense that the CCA recognized that you make a large purchase up front like a fridge and then use it for 10 years so in a sense you claim part of the large cost each year of use.
I also use size of item as a factor too such as a swingset or playhouse whereas I would write off %200 of sand if I bought it in the year I bought it regardless since it is replaced more often.
Think of each item itself such as a $50 highchair vice a $200 bill for 4 chairs. So go by the individual cost of the item.
The regulations are sketchy since they don't take our type of purchases into account. I would argue a highchair or playpen is fully deductable in the year of purchase because it is needed right then and there and no guarantee that in 2 years you will have a child using it so it was an immediate requirement not a long term thing - even though you reuse it in the future if that makes sense.
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I agree Playfelt ... the CRA often does not know what to do with US in this field cause we are so 'different' than most business between the shared space, shared equipment and well the fact that children can be so HARD on toys and equipment so even something expensive might not be around in 2 years cause they pooched it through play :roll:
Heck if we are being truly reflective it has only been a blink of an eye where we have actually been seen by the government as WORKING and therefore offering a service as a BUSINESS and that since we were indeed WORKING that our income was worthy of TAXING .... of the good old days ;)
