“Capital Assets Amortization Schedule” For The Taking

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Generally, you can deduct the costs used in your business. According to bodies such as our Canada Revenue Agency and the Internal Revenue Service as … there is another stipulation to this general rule.

A business expense is a cost you incur for the sole purpose of earning business income.

So, you can’t just deduct everything and all expenses and costs you incur throughout your day in your business. Personal expenses just don’t belong here. There are additional rules for various type of deductions. If you want to read up on the general guidelines, try this …

  • RC4070 – Guide For Canadian Small Business
  • Anyway, if you probably didn’t know that, this form is not for you.

    I created this form to keep track of all the assets that I am depreciating over time for my clients. Technically, the word is now “amortization” and not “depreciation” … whatever! Every year in my “current file” I always try to obtain a copy of the original asset invoice, and keep it in the file. Years and Years ago, our firm used to just update our schedules and include the total of all additions and keep track on an aggregate basis. Years ago , when our firm realized that we weren’t keeping all client files FOREVER … they started to keep a list in our permanent files of all the additions every year. When I got involved, I said… That’s Silly! Just update the schedule that you are using every year!

    And here is how I do it … I don’t group all equipment together, I just add new lines and describe every asset on its own line. Usually, I will add an extra line too … to say which fiscal year the addition relates too! Well, I would show you … but my client’s information is confidential. So, here’s a blank view how it looks.

    HART Uses this to keep track of all assets

    So, that’s what it looks like …. my “AMORTIZATION SCHEDULE”. You can click on it for a bigger view. It’s programmed for Straight-Line method, Declining Balance Method, and Canadian Tax Rules (which is 50% rate on net additions in the current year). Just copy the color formula’s in the appropriate areas.

    You are welcome to take this template and use it for your own purposes. You are also free to pass it along (because it’s not that big of a deal), although I hope that you remember where you got the idea and give me credit 😀 Maybe stroke my EGO here, and give me a blog comment to let me know that you have taken this template. I have seen worse templates out there on the ‘Net and they are trying to charge you a big $$$ for it. Maybe if you like it .. you could buy me a LARGE cup of coffee? (See sidebar)

    I am currently using Microsoft Excel for Windows 95, version 7.0 as my preferred spreadsheet program and version. You can change the text of anything I use to suit your own needs .. it is just a guideline.

    HART’s CAPITAL ASSET AMORTIZATION SCHEDULE —> OPEN to view, SAVE to Disk ..

    Take care.
    HART
    1-800-HART

    Comments

    Ken says:

    Hiya and thanks for the spreadsheet–I was looking for exactly this!

    I have a question: should the logical check in column K (i.e. Tax Rate Provisions) be “>=0” instead of just “=0”? So: “=ROUND(IF(F12-E12>=0,J12*C12…” I think with the logical check as “=0” the “value if false” part of the IF statement will only get executed if your Additions and Disposals are equal, whereas we want it to execute if your Additions exceed your Disposals.

    I think! I’m just learning this CCA stuff, so I could very well be wrong!

    Thanks again for sharing this spreadsheet!

    Ken

    =ROUND(IF(F12-E12=0,J12*C12,(J12*C12-((E12-F12)*C12*0.5))),2)

    Hmm .. I think you are right. I probably never had that situation, or manually fixed it on the individual spreadsheets I do each year for each client.

    Above is the formula for tax rate rules and, it is supposed to mimic the tax return.

    Suppose in Year 1 you buy $10,000 … at 20% … the ending UCC would be $9,000. In Year 2 on the excel spreadsheet, the opening balance in assets of $10,000 and opening accumulated depreciation $1,000 to match.

    If year 2 adds $1000 and disposes $2000 (ignoring accum.depr.) .. the formula with the =0 shows $1,700 depreciation. If you use >0 it shows $1,600.

    Same figures on T2 … CCA would be $1,600

    If you switch it up ($2000 additions $1000 disposals) there is no difference in the results being $1,900.00

    >>
    Did you also test my other formulas? 😀

    Ken says:

    “No refunds!”

    LOL!

    Yes, I don’t think I would ever come across that situation in real life, but I was just playing around and thought I’d mention it. Habit from my past life as a software tester!

    Great spreadsheet–very helpful!
    Thanks,
    Ken

    I have read many posts about but this paragraph is truly a good paragraph, keep
    up the good work.

    I really like reading a post that can make men and women think.
    Also, many thanks for allowing me to comment!

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