Question:
I recently moved into a new building and was required to cover the cost of making the new space suitable for my purposes. This included purchasing new lighting, installing new flooring, internal walls and wall coverings. Is it possible to write off these expenses from my business?
Answer:
According the the Income Tax Act, any improvement made on leased property that cannot be removed at the end of the lease are considered leasehold improvements. These items cannot be deducted in the period they are purchased but instead, are capitalized as a Class 13 asset and will be written off over the lease term.
