Dear Canadians:
A bit of tax advice: spend it if you got it.
This advice comes from Dave Chueng from DQ Studios. He says “Was recently reminded by my accountant, if cash is available, to take advantage of the 100% write-off of computer tools/toys that’s available until Feb 2010.”
That’s right. Instead of depreciating slowly over time, computers purchased before February 2010 are 100% write-off-able. This amounts to a huge tax breaks for small business.
Chueng says DQ has purchased a new 13 inch Macbook and a Mac Pro workstation for his wife and business partner Quinn.
Here at Eye For Detail HQ we’ve picked up a new 27 inch iMac, also for the wife and business partner.
Rather than wait until tax time to go in to the accountant, Canadian Photographers might want to take a look at their budget right now and see if writing off a new computer would be a sound business decision.
For more information, check out the 2009 budget info. For even more info, check with your accountant.
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2 Comments at "Tax Advice for Canadians"
Out of curiosity, you may want to clarify the statement that the write-off is available until 2010.
According to the budget 2009 document that’s linked within the article; under “Chapter 3: Actions to Support Businesses and Communities” it states the following:
“Budget 2009 proposes a temporary 100-per-cent CCA rate for computer hardware and systems software acquired after January 27, 2009 and before February 1, 2011. In addition, the rule that restricts CCA deductions to one-half of the CCA write-off otherwise available in the first year will not apply to these computers.”
Note the date of February 1, 2011.
So verification would be required with either the CRA (Canada Revenue Agency) or your accountant if you intend on purchasing during 2010. That said, if your intent is to write off the purchase on your 2009 income then please do purchase the computer asap.
Cheers,
Dave
Hey David:
You’d think that they’d have changed that, wouldn’t you? But here is the actual wording of the budget, as passed, from http://www.gazette.gc.ca/rp-pr/p2/2009/2009-05-13/html/sor-dors126-eng.html. Note the date:
11. Schedule II to the Regulations is amended by adding the following after Class 51:
Class 52
Property acquired by a taxpayer after January 27, 2009 and before February 2010 that
(a) is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment, but not including property that is principally or is used principally as
(i) electronic process control or monitor equipment,
(ii) electronic communications control equipment,
(iii) systems software for equipment referred to in paragraph (i) or (ii), or
(iv) data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment);
(b) is situated in Canada;
(c) has not been used, or acquired for use, for any purpose whatever before it is acquired by the taxpayer; and
(d) is acquired by the taxpayer
(i) for use in a business carried on by the taxpayer in Canada or for the purpose of earning income from property situated in Canada, or
(ii) for lease by the taxpayer to a lessee for use by the lessee in a business carried on by the lessee in Canada or for the purpose of earning income from property situated in Canada.
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