I really appreciate your feed back. I find these case specific questions very useful as background for tax accounting and dealing with CRA.
I would like to clear up an apparent misunderstanding regarding my post. Hopefully this will clarify matters.
Incorporation fees can be expensed under $3000 or capitalized at $3000+.
I would not add the incorporation costs on Schedule 8 or as an asset. I would simply expense them under GIFI Line 8760, Business tax, fees, licenses, due, memberships. Of all the GIFI expense codes, this comes closest to incorporation costs. I put the annual incorporation fees in this account as well.
The reason that I would not add it Schedule 8 as class 14.1 is because you would need to override the amortization rate to fully expense this amount. This can only lead to unnecessary complications.
My point regarding capitalizing some assets <$500 was to point out that if and only if the aggregation of those small costs is material to the business, then you may consider it. For example, many trades can easily spend $20,000 or more in small tools in the first year of business even though most of these tools cost <$500 on an individual basis. However, it is more accurate and more meaningful to the business to track their investment in tools by capitalizing them.
I would be very cautious to take bookkeeping advice from a CRA call centre agent. They are not trained for this and may give you inaccurate advice. I would consider assistance from a senior resource officer when researching tax topics such as the new assets classes if and only if they provide detailed Income Tax Act (ITA) and Excise Tax Act (ETA) references. In my experience very few first or second level CRA call centre agents have any bookkeeping, financial statement preparation, or tax preparation experience.
If I were you, I would learn from the CRA Resource officer how to search Canlii for references in both the ITA and the ETA.
I would invest in the following reference books:
Byrd & Chen’s Canadian Tax Principles, student edition with problems.
Preparing Your Corporate Tax Returns, Wolters Kluwer.
I would invest in Preparing Your Tax Returns (Personal), Wolters Kluwer.
I would search Google for references on such sites as TaxTips, Bean Counter, and other reputable sites.
Sometimes I might find useful references on YouTube and Udemy.
I might consider such excellent tax training at Video Tax News or The Knowledge Bureau.