Tax question

[Vtorrance]

So I am just starting this year but I am the type of person to be over organized and like to plan ahead. So I am trying to get a handle on things now so I am good come next year tax time.

My question is do any of you claim a percent of your cell phone? If so what percentage? I do all my business with my cell but also use it for personal use. I know you can claim a reasonable percentage according to CRA so what would it be?

Second question, capital cost allowance does it have to be a min amount? What items can go there? I know things that are used for a long period of time that will depreciate in value but not sure specifics. Putting expenses under the cca means I can claim the percentage again the year after and so on right?

Sorry for all the questions. And thanks in advance.

P.s good luck to everyone whi is doing theirs this year!

[Artsand crafts]

About cell phone: In my case I did not bother, because I pay so little for my service. My husband and I are in a plan where we pay together $45. All incoming calls are free. I do not use my phone so much so I can not give you any advice there.

CCA: Shelves, tables, gates, cribs, mats, etc. Yes, you can amortize that over the years.

[bright sparks]

For an item to qualify for depretiation as capital, it must be a minimum of $200. So baby gates etc will not qualify unless you are buying ones that exceed $200 which I find highly unlikely. In 2010 I purchased a play structure for $850 so I am still writing that off now. Also my quad stroller was just over $500 so the same with that. My car seats were less than $200 each including tax so these are not capital.

As for your cell phone, you have to declare what percentage is for home use and and how much is for personal use. Then you can only claim the business use portion. This is how it works for all househould bills except utilities such as hydro, gas etc which will be based on square footage of home, square footage used for daycare and hours per week this space is used.

I hope this is helpful

[Artsand crafts]

Yes you are right Bright sparks. Sorry about the mistake (it has been a year since my last tax filing). When I file with Turbo tax it guides you all the way and I remember there is a section where that reads (the $200 minimum). I have purchased a lot of used items. Some items that I remember claiming as CCA were video monitor, quad stroller, outdoor structure, gate (yes, a expensive gate including the installation cost from the store)

[playfelt]

I include my cell phone in the business use of home calculation with the idea that even if my parents normally just use the house phone to call me the phone is my security line in the event of an emergency such as when we are outside so it is available for use always during daycare hours. I include my cable and internet the same way with the idea it is available to us during the daycare hours to watch tv or do lesson planning during naptime. Again something that applies to us but not necessarily other businesses because it isn't part of how they conduct business.

[Artsand crafts]

Hi playfelt, what percentage of internet and cell phone you use?

[playfelt]

Put both into the business use of home calculation so not sure on the percent as it is a math question based on the square footage of daycare space, total space of house, hours and days of care. ie they are available to me during daycare hours