How do I write off a financed piece of equipment in Canada?

Forum|Forum|1 year ago
February 4, 2025
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How do I write off a financed tractor? I purchased it for landscaping. Can I enter in the full amount, or just the financing payments for the year?

TurboTax Online Self-Employed

TurboTaxSusan

You generally can't write off the full amount for a vehicle or expensive piece of equipment in just one tax year. You would need to claim your tractor in the capital cost allowance (CCA) section as a Class 10 addition, and then claim a portion of the cost yearly over the life of the machine.

This CRA webpage has more information about Capital cost allowance (CCA): Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide – Chapter 5 – Capital cost allowance (CCA)

thorndalelawns18Author

I cannot find the Class 10 category. Does that cover vehicles? I do not farm to be clear. It is used for landscaping.

TurboTaxSusan

Yes, class 10 is for vehicles - a tractor can be any kind of tractor - farm tractor, tractor for pulling freight containers, lawn & garden tractors, etc... In the vehicle expenses section you'll be asked to pick a CCA class a few pages in.