Capital Cost Allowance
by Lloyd
(Halifax)
Hello,
I have started doing the books for a fast food vendor. It's their first year in business and they've purchased a fish & chip truck.
My question is, would the truck and the equipment in the truck be classed separately? For example, shortly after purchasing the vehicle they had to purchase a new generator. The generator that came with the truck was inoperable. I'm confused as how to list this new purchase.
If you could provide the appropriate IT bulletin or circular (I think I have read all of them and my brain is starting to hurt), that would be greatly appreciated. :0)
I have only recently discovered this website and I am thrilled to have found a forum for these types of questions. I am also new to QuickBooks and I have a feeling I will be posting a few questions in that forum as well!
Thanks,
Lloyd
Hi Lloyd,
I apologize, I'm pressed for time right now, so my response is going to be fairly short. A shocker I know!
I think if you look at current expenses or capital expenses? on the CRA website you might be able to come to a decision on how to handle your transaction.
Pay attention to the response to the third question - "Is the expense for a part of a property or for a separate asset?"
Another place you might want to brush up on are "Things You Should Know About CCA". You'll find it at the end of my chat on CCA.
Hope that helps ... and I'm thrilled you are finding the website practial and useful.
P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.