Deducting the Cost of Electronic Gadgets for Your Business – Tax Tip Weekly

Deducting the Cost of Electronic Gadgets for Your Business – Tax Tip Weekly

Many small business owners do not realize that a large majority of electronic gadgets and equipment that they use in the operation and functionality of their business are taxable.The amount that you can deduct for electronic gadgets depends on if they are considered a current year expense or a capital expense. A current year expense is one that keeps recurring and a capital expense is one that lasts for more than a year.

0:00-0:36 deducting cost for electronic gadget depends on current year expense or capital expense
0:36-1:04 examples of current expenses
1:20-2:02 electronic gadgets of capital expenses
2:02-3:13 Half-year rule on capital cost on asset
3:13-3:30Tip on capitalizing or current tax deduction

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Disclaimer:
The information provided in this video is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. All figures and dollar amounts are used for example purposes only. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.

6 Comments

  1. Halo L on September 4, 2021 at 10:21 pm

    Would the accounting treatment be the same if I purchased one computer part such as RAM to increase the performance of my computer compared to if I purchased all the individual computer parts to build a computer in a given month?

  2. Diane MacKay on September 4, 2021 at 10:28 pm

    Thanks for the tax tips…slow and simple…I can actually understand your message. Got more tax tips for new business start ups?

  3. Brett Brohman on September 4, 2021 at 10:39 pm

    I’m working with a small business in marketing and also helping to streamline their management. There is a small staff of 4 employees not including the owner. They have a brick & mortar store, as well as a regular outdoor festival/convention/fair circuit they participate in nation wide. I suggested to the owner that a new set of cell phones/smart phones for the staff as communication devices whilst in the field may be tax deductible. Are phones, in this capacity, eligible to the same 100% tax write-offs as you’ve mentioned for computers? They would be a valuable tool for the staff. Please advise,  thank you.  🙂

  4. John Jarrin on September 4, 2021 at 10:41 pm

    I’m a tv news producer and must constantly monitor the three cable news stations when i’m at home to stay updated on world events, and to see what the competition is up to.  can I therefore claim my new tv as a deduction?

  5. Not Ashamed on September 4, 2021 at 10:44 pm

    Hello Allan,
    I love your videos!
    I bought a piece of equipment in my landscaping business(not a tech gadget)…pre HST it is under $ 500(CAN) so it seems to fall under class 12 according to my paperwork…but post HST it is over $ 500 and then it would fall into class 8…How do I file my purchase as I get the HST back…Thank you

  6. Allan Madan on September 4, 2021 at 10:58 pm

    Check out our weekly tax tip video on deducting the costs of electronic gadgets that you use for your business!
    https://youtu.be/_o00snvl8yI

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