Depreciation, do I include the tax while doing the math?

CloudCloud Member Posts: 2

Hello!
If I purchased a computer $1000 + tax (so $1130) in 2020, to calculate the CCA will be (half year rule)
27.5% of $1000 or $1130?
And for the next years, it's 55% of the remaining...
how do I calculate that? if I keep doing 55% of remaining I will never depreciate the asset. What's the length I should consider?

thank you

Comments

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @Cloud , I just answered your other question in a different thread but this is more of a complex accounting question which would be best answered by your accountant or CPA to ensure that this is handled correctly.

    edited January 7, 2021
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