Where I should put lease payments on T2?

Hello there:

I am doing a T2 in which client has capitalize leases. I capitalize the lease for accounting purposes. but where I should put lease payments on T2. On S8supp I find place where I can put operating lease capitalized and this balance my S8supp. But I could not find any line on S1 where I can deduct lease payments only for tax purposes. thanks in advance for help.


HI..   Maybe look on the CRA site for further study. 

From my Accounting experience, examination of the exact lease would help determine what is the expense

portion and what is the capital portion.   For example if it is a multi year lease, then is there reason to set up current year finance obligation, and Long term finance obligation?  I think so.  

Then related to that long term obligation it would have included in it, possibly the finance and admin charge, as well as the  Interest charge. 

So depending on how the lease is written, you may or may not have interest expense to capture as an expense in the current year.  As to the capital..   Well the Full cost of the asset.. normally code into the asset class.. (asset) 

on the other side, the Current and longterm Financing  Liability. 

Then the "Expense"  Would be the CCA on that Asset..    Dr to Depreciation Expense, and Cr to Accumulated Depreciation (under the assets) .  

I hope that helps. 


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