Can I claim business expenses from the previous year?

[Marcos86]

Hi, I bought a computer at the end of 2021. I did one freelance job using that computer in December and got paid in January 2022. Can I claim that computer as business expenses in 2022 taxes? Thanks

 

[Naturgrl]

Hi, I bought a computer at the end of 2021. I did one freelance job using that computer in December and got paid in January 2022. Can I claim that computer as business expenses in 2022 taxes? Thanks

No. You claim it two ways - as a current expense (claim it for year of purchase so 2021, not 2022) or as a capital expenditure over the many years of your business. Either way, the computer is for your business not personal use. If it is you need to calculate that. CRA will know if you did one freelance job that you are not using the computer only for that job. So you calculate how many hours per day you use if for business vs personal. So if you use it 8 hours a day for business then you can claim 33% of the expense.

 

[Marcos86]

Thanks for you answer. So is it recommended to claim business expenses the year I buy the tools (in this case the computer and software) or is it okay to claim next year, when I get the income? I also used the computer during 3 months in 2022 for another job, but i will be paid in 2023. Thanks again Naturgrl