Computer equipment and systems software purchased for business use become a much faster write-off with the new Capital Cost Allowance rules for such equipment purchased after January 27, 2009 and before February 1, 2011 (Class 52). The Capital Cost Allowance rate is 100% and (to make it an even better deal) the standard half-year rule does not apply, meaning that you can fully write off eligible computer equipment and systems software in the same year you purchase it.
For more on income tax deductions for Canadian small businesses see:
- Changes to Small Business Taxes for Canadian Income Tax 2009
- Business Expenses as Income Tax Deductions Index
- Maximize Your Small Business Income Tax Deductions
- More Ways to Maximize Your Business Income Tax Deductions
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Hi. I found you from Googling “How to start a small biz in Canada”. I was wondering about what are the advantages and problems with basing a small dotcom start-up in Vancouver v. Seattle.
Sorry, Jason, I don’t know enough about starting a small business in the States to help you with this one, but would certainly be interested in what you find out.
Can you please advise whether laser all-in-one printers are eligible for 100% tax write off like computers in the first year itself?
Hello Sam, No, laser printers would not qualify. I believe they would fall into Class 8. You can read more about the Capital Cost Allowance Classes at this page of the Canada Revenue Agency site.
Hi, I was googling where do printers fall for CCA and came across this page and something bothered me about the answer, and I hate having to dig every time I look for a CCA class for printers… it’s so annoying that it isn’t on the CRA website…
I did find something in CCH Preparing your Income Taxes 886t.12 claims a technical interpretation CRA Doc 2005-016333117 puts printers into 3 categories
1) small multi-functional printers under $10,000 are Class 45/50/52
2)medium multi-functional printers in excess of $10,000 also Class 45/50/52
3)larger printers over $100,000 cost, with it’s own CPU might be Class 8 rather than 45 because the program is ancillary to the printer.