Marc asked:

Are incorporation fees considered an asset or an expense in Ontario?

John R. Mott answered:

For financial statement purposes, incorporation fees are considered to be an asset. They are usually reported on the balance sheet as Intangible Assets or Goodwill.

For income tax purposes, they are defined as Eligible Capital Expenditures, which may be amortized at the rate of 5.25 per cent declining balance.

About the author

John Mott is a chartered accountant and tax specialist with a private practice in mid-town Toronto. He provides tax, accounting and advisory services to individuals and small businesses. He may be visited online at: johnmott.com.

 
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