Entrepreneurship & Small Business

Corporate use of personal tools & equipment

  • Last Updated:
  • Nov 10th, 2022 5:24 pm
[OP]
Newbie
Sep 10, 2022
3 posts

Corporate use of personal tools & equipment

Hi,

I have an Alberta corporation and am the sole Director, Officer and Shareholder as well as the only worker. Can I use the tools & equipment that are in my personal name to generate revenue for the corporation?

The tools & equipment valued at around $5000 were a capital dividend from the dissolution of a previous business. Aside from claiming depreciation, it would seem to me that selling these assets to the new business would mean paying tax twice as the purchase is made ultimately with after tax dollars. There isn't much benefit for me to retain earnings or build equity in the business as the business is a short term (4 year) option while I attend university.

Information on the topic is appreciated.
1 reply
Deal Fanatic
Jan 21, 2018
7826 posts
8514 upvotes
Vancouver
Certainly you can use personal tools and equipment to help earn revenue for the business. The issue would be if you were charging a fee to the business. You would have to establish a genuine business need and a fair market value to deduct the fee as a business expense. No fee, no issue.

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