I (as my corporation) bought a high-end unlocked smartphone (not under any carrier contract). My question is how this should be reported under Canadian tax rules. Must it be treated as an asset to be depreciated, or can it be treated as an office expense? I am assuming the monthly carrier charges are OK as telephone expenses.
Explained in T4002. http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-e.html
If you buy a computer, cellular telephone, fax machine, or other such equipment, you cannot deduct the cost. You can deduct CCA and interest you paid on money you borrowed to buy this equipment that reasonably relates to earning your business income. For more information on CCA, see Chapter 4.
It sounds like a class 8 for CCA if you follow the links.
Class 8 with a CCA rate of 20% includes certain property that is not included in another class. Examples are furniture, appliances, and a tool costing $500 or more, some fixtures, machinery, outdoor advertising signs, refrigeration equipment, and other equipment you use in business.
Photocopiers and electronic communications equipment, such as fax machines and electronic telephone equipment are also included in Class 8.