QB Issue Resolution:

The tax rules and accounting standards for Capital Assets are similar but different.  The way they are classified and amortized on your internal statements will probably be different from what ends up being claimed on the tax return – that is normal and fine in Canada.

The tax rules are pretty explicit for how capital things get classed and amortized.  Financial accounting is more flexible and allows more choices – but those choices have no effect on the tax treatment.

The direct answer to your question is NO – do not class it as ‘office expenses’.  Class it as a fixed asset (if it has income earning value over many years).  The ‘expense’ you are talking about is called depreciation (or amortization) that is calculated and recorded separately from the asset itself.

You need to do a bit of reading about ‘fixed assets’ to get a better understanding of this topic.  Try to focus on Canadian sources, because there are quite different rules and practises in the US.

Resolution for Issue 'If I list new equipment in the Property, Plant & Equipment category it doesn’t show up on a P&L Report as an expense. Does that mean it won’t be deductible?' available: Yes (Solved).
Source: Intuit Community forum.

If I list new equipment in the Property, Plant & Equipment category it doesn’t show up on a P&L Report as an expense. Does that mean it won’t be deductible?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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