Smartphone bought for business use - Canada
I (as my corporation) bought a high-end unlocked smartphone (not under any carrier contract). My question is how this should be reported under Canadian tax rules. Must it be treated as an asset to be depreciated, or can it be treated as an office expense? I am assuming the monthly carrier charges are OK as telephone expenses.
(1)1 Comments
Sorted by latest first Latest Oldest Best
Explained in T4002. www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-e.html
If you buy a computer, cellular telephone, fax machine, or other such
equipment, you cannot deduct the cost. You can deduct CCA and interest
you paid on money you borrowed to buy this equipment that reasonably
relates to earning your business income. For more information on CCA,
see Chapter 4.
It sounds like a class 8 for CCA if you follow the links.
Class 8 with a CCA rate of 20% includes certain property that is not
included in another class. Examples are furniture, appliances, and a
tool costing 0 or more, some fixtures, machinery, outdoor
advertising signs, refrigeration equipment, and other equipment you
use in business.
Photocopiers and electronic communications equipment, such as fax
machines and electronic telephone equipment are also included in Class
8.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.