Entrepreneurship & Small Business

Amortization on equipment with financing

  • Last Updated:
  • May 3rd, 2021 9:05 pm
[OP]
Jr. Member
Feb 9, 2016
125 posts
2 upvotes

Amortization on equipment with financing

If I bought a business equipment with financing in 2020 (Down payment in 2020 + monthly payments for 2020-2022), can I claim amortization expense on the total purchase price
on my tax return or only on the amounts I actually paid in 2020??
3 replies
Newbie
Jun 7, 2016
91 posts
63 upvotes
Yes, you own this equipment, this is not a lease, similarly to a building on which you have a mortgage, can take CCA on the full cost.
Deal Addict
User avatar
Dec 9, 2007
1224 posts
636 upvotes
Just to add on, you cannot deduct the monthly payments.... Well the interest portion you can. Not the principal.

Top