Here is the situation, client has a small business that conducts drug investigation services. He uses a dog he purchased and trained to sniff out drugs at various worksites. The Dog cost several thousand dollars, I am trying to figure out a way for him to claim the cost of the dog. I am thinking it should be a capital asset but ???
CRA told me to ask for a ruling and it could take 6 to 10 weeks for them to respond.
If anyone has any ideas I would appreciate your commentary
Livestock is not normally depreciableā¦
but, if it where to fit anywhere, it would be the catch all class, class 8
However, without going to the Act or Regulations, āPreparing your Income Tax Returnsā states that animals are precluded from eligibility of CCA.
Thanks Bert, my thinking as well. CRA provided little help, but to say ask for a ruling when I inquired if it should be under a certain class. Class 8 seems to be logical choice
did a little more research, CCH has a case on it from 'External Technical Interpretation, dated 09/10/12, document 2012-0457171E5.
Pretty sure material is copyrighted, so can not post it here, but seems to say, class 8. Case is about a guard dog.
Explored this with a client a long while ago - he did pipeline inspections using his dog. Class 8 it was. And, of course, all the expenses of maintenance of the dog were current.