In finding that small tools that the taxpayer purchased at a unit cost of less than $200 to maintain the units in a rental building (one of which was occupied personally) qualified as Class 12 depreciable assets rather than being deductible as a current expense, and after quoting the definition of “tool” in IT-422, CRA stated:
Unless tools, at a unit cost of less than $200, are inventory assets - which does not appear to be the case here - the CRA is of the view that such assets are depreciable assets described in Class 12
CRA went on to find that the taxpayer’s capital cost allowance claims “must be reduced to reflect the personal use that is made of [the tool].”