Incorporation Cost Bookkeeping Entries

by Diane
(Surrey BC Canada)

Amortization of Incorporation Costs

Amortization of Incorporation Costs

I'm dissolving our corporation and currently have $175 of incorporation costs listed as an asset.

How do I write this off so it is no longer shown as an asset?



section divider



Hi Diane,

All you need to do is expense the $175 to professional costs to clear the asset.

In about 2000, the rules for handling incorporation costs changed. I think Section 3064 paragraph 12 of the old CICA Handbook (I no longer have a Handbook to verify this) excluded incorporation costs from intangible assets.

It used to be they were capitalized and amortized over time. Now they are expensed for the most part.

You may have a CEC amount on Schedule 10 of your T2 tax return that should be reviewed.




P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

Click here to post comments

Return to CCPC.

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.



SHORTEN
Your Learning Curve!

 



Warm up your tea cup and check out these chats ...

Click on image above to read the chat.








Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is NOT associated with the business operating in Bonnyville AB.


A Handy Reference