If you are looking to make computer equipment purchases in the near future, now is an excellent time. Not only will you benefit from having the latest, greatest, fastest…, you’ll also get to take advantage of a tax benefit that won’t be available for much longer.
For computer equipment purchased after January 27, 2009 and before midnight, January 31, 2011, there is a a 100% capital cost allowance (CCA) write-off. The 100% CCA rate allows businesses to fully deduct the cost of eligible computers, including systems software and related equipment, in one year. Acquisitions made after that date will be eligible for only 55% declining balance CCA rate, to which the half-year rule will apply.
To be eligible, the computer equipment must be new, purchased in Canada, and be used in business carried on in Canada.
For more information on this and other tax relief measures, go to http://www.cra-arc.gc.ca/taxcuts/