Supplies vs Depreciation Value

[ttremble88]

Hi all. I am trying to keep on top of all of my receipts and calculations for this year. As I just filed my taxes for the first time for last year, I learnt that there is 2 lines: Supplies (food, crafts, cleaners ect) and Depreciation Value (furniture and appliances that lose value over time)

My question is for things like high chairs and playpens, can they be claimed on both lines or just claimed under depreciation value.

Any insight?

[mickyc]

I think that things that are claimed for a depreciation value have to be big ticket items like a computer, new fridge, furniture etc. I claimed all of my things like high chairs, playpens etc as supplies and claimed 100% of it.

Your accountant would be a good person to check with and find out exactly what the amount is.

[bright sparks]

Depreciation is only for single items costing $200 each or more, regardless of what the item is. Your accountant would claim a certain percentage of each item per year.

[ttremble88]

Thanks ladies! I did not know that the item had to be over $200. He never mentioned that before.

[bright sparks]

Thanks ladies! I did not know that the item had to be over $200. He never mentioned that before.

I confirmed it via email with my accountant before posting so I know it's accurate info.

[Lee-Bee]

The tax worksop I did at the CCPRN with an accountant said the "rule" is if it costs over $300 and is used for more than 1yr then it uses the depreciated value method. If it is less than $300 or won't last for 1yr then you just use it as supplies.

They also said that during your opening year you don't use the depreciated value for items purchased to get started...I need to confirm this but I am hopeful it is true as I opened this year.

[bright sparks]

The tax worksop I did at the CCPRN with an accountant said the "rule" is if it costs over $300 and is used for more than 1yr then it uses the depreciated value method. If it is less than $300 or won't last for 1yr then you just use it as supplies.

They also said that during your opening year you don't use the depreciated value for items purchased to get started...I need to confirm this but I am hopeful it is true as I opened this year.

Yes Lee-Bee the first year is different with respect to start up costs but both accountants I used specialized in home daycares and they both told me the figure was $200

[mickyc]

There are exceptions I am sure. I bought a motorized kids quad type thing. It was over the $200 and I still claimed it as a daycare expense and not the depreciation way. The only things that we have claimed as a depreciation are the computer I bought, the laptop and our new fridge.

[ttremble88]

The tax worksop I did at the CCPRN with an accountant said the "rule" is if it costs over $300 and is used for more than 1yr then it uses the depreciated value method. If it is less than $300 or won't last for 1yr then you just use it as supplies.

They also said that during your opening year you don't use the depreciated value for items purchased to get started...I need to confirm this but I am hopeful it is true as I opened this year.

Really?! I know for sure that my accountant claimed dv, and it is my first year...... I hope that it does not screw anything over!

[playfelt]

It has more to do with what it is and it's use than the value of it. Something that is to give long term value and especially something shared like a new vacuum cleaner or playhouse. In theory they are supposed to go in that category and there is no actual dollar value but if it is under $200 rarely is anything said in an audit from what I have been told.

In the first year that you buy something you can only use 50% of the value of the item to determine your deduction - it tells you how to do it when you fill in the chart on the T2125 form. In subsequent years it will count for the full value.