Small Business owners should note that for electronic data processing equipment i.e. computer hardware and related software acquired between January 27, 2009 and January 31, 2011, the entire amount of the purchase can be deducted against income. This is a significant incentive for business owners to purchase computer equipment before February, 2011. The accelerated depreciation rate is 100%. and there is no half year rule. The usual CCA rate for computer hardware, which is subject to the half year rule (i..e 15% in the first year) is 30%. To qualify the hardware must be:
- situated in Canada
- new equipment
- used by a business that is conducted in Canada
The applicable CCA Class to select when preparing your tax return is 52.
More information can be found at the CRA website Classes of depreciable property:
About the author: Ronika Khanna is an accounting and finance professional who helps small businesses achieve their financial goals. Please sign up to receive articles pertaining to small business, accounting, tax and other occasional non business topics of interest. You can also follow her on Facebook or Twitter.
As an accountant, I occasionally (literally) get shoeboxes of documents from my small business clients. Receipts are stuffed in and scrunched up and comprise everything from gas (good) to toilet paper (bad). As I contemplate the mind numbing exercise where I will have to sift through everything, identify missing information and worst of all, enter it all into an accounting software (usually Quickbooks), I often feel a sense of dread. I've often fantasized about a tool that could do it all for me (of course I could outsource, but since I only have a handful of these types of clients, it is not worth it, yet...). So, when I saw an ad for the Neatdesk scanner (shown ad nauseum on CNBC), I felt a little bit of glee as I perceived a potential solution to (at least part of ) the problem.Read More
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