# TAX TIME!

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Can you write off a new GPS'r? Say you run a small company and need to .. oh.. get somewhere

Would that qualify?

Can you write off a new GPS'r? Say you run a small company and need to .. oh.. get somewhere

Would that qualify?

Actually you can, kind of.

You can only write off the depreciation of hardware for each year. You can also only write off the business use of the hardware.

So let's say you bought a \$500.00 GPS, and to be generous, it depreciates \$100.00 a year, and you use it 1% for business and 99% for geocaching.

You can write off that \$1.00.

Too bad you missed out this year. But you can hold that loss over for seven years.

well 1\$ is better then none! next year!

You can write off that \$1.00.

Too bad you missed out this year. But you can hold that loss over for seven years.

:0)

There is an argument to be made for a higher percentage... If you geocache for 2 hours on a week night, and 10 hours per weekend, that's 20 hours a week. I am sure you work 40-60 hours a week, so 20 hours geocaching and 60 hours working = 75% work

what if you geocache during work

There is an argument to be made for a higher percentage... If you geocache for 2 hours on a week night, and 10 hours per weekend, that's 20 hours a week. I am sure you work 40-60 hours a week, so 20 hours geocaching and 60 hours working = 75% work

what if you geocache during work

There is an argument to be made for a higher percentage... If you geocache for 2 hours on a week night, and 10 hours per weekend, that's 20 hours a week. I am sure you work 40-60 hours a week, so 20 hours geocaching and 60 hours working = 75% work

Ah, another government employee! Speaking of tax dollars... there they are at work!

if you have a long commute into work.. and need a GPS to get there everyday it might add up!

if you have a long commute into work.. and need a GPS to get there everyday it might add up!

Unless your work site changes every day, the auditors at CRA might not believe that you need the GPS to get there every day!

OK, here's the skinny...

You could get away with it (anybody can unless you get audied..I doubt a \$400 GPS will trigger an audit) as long as you have business income. Just because you are employed and want one to get you to work doesn't count unless your employer signs a T2200 form saying you have expenses for work.

For deducting it, it depends on what CCA (Capital Cost Allowance) class you want to use as per what Keith was eluding to. Not all CCA items get depreciated at the same rate, nor do you have to CCA an item purchased in some cases.

For example, you could consider a GPS as computer equipment which is class 10 and doesn't seem to have a minimum amount. No point using class 10. Use class 8 and CRA says that you only use this class for electronic equipment over \$500. A general rule is that if is under \$500, you just expense the item and don't bother depreciating it with CCA.

In other words, as long as you didn't spend more than \$500(before tax) then I would just call it an office expense and write it off the same year.

Edited by M3J

If you run a small company and have to drive places to meet clients or vendors then you certainly could charge it entirely to the business as an office or vehicle expenditure. If you also use it after work... well my kids use the office paper cutter all the time for homework .

It's helping you get to new places on time for business purposes. If you got lost you might not get the contract or seal a deal and heck we all know how men hate to ask for directions . Sooo many times Chris has taken the GPS when before he'd have phoned me from somewhere to ask me to look up on Googlemaps to direct him to where he was supposed to be going . Ok, this happened once when he went to Vancouver and that's about it . Now he takes the GPS and all is well.

If you run a small company and have to drive places to meet clients or vendors then you certainly could charge it entirely to the business as an office or vehicle expenditure. If you also use it after work... well my kids use the office paper cutter all the time for homework .

It's helping you get to new places on time for business purposes. If you got lost you might not get the contract or seal a deal and heck we all know how men hate to ask for directions . Sooo many times Chris has taken the GPS when before he'd have phoned me from somewhere to ask me to look up on Googlemaps to direct him to where he was supposed to be going . Ok, this happened once when he went to Vancouver and that's about it . Now he takes the GPS and all is well.

And of course, Helen, you and Chris declare your bottle winnings, right? You could deduct your GPS units right there!!!

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