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Canada Revenue Agency Announcement – 100% Business Computer Tax Credit to End Jan 31, 2011

The Canada Revenue Agency tax credit for business computer and software systems is the perfect opportunity to upgrade your hardware.  In summary, it allows businesses to write off the full cost of eligible purchases against their revenue! The detailed information pertaining to this credit can be found at (http://www.cra-arc.gc.ca/taxcuts/).  As with everything these days there are restrictions surrounding eligibility, but I have quoted these restrictions from the CRA website in this blog entry for our clients:

“The accelerated capital cost allowance (CCA) for eligible computers announced in the 2009 budget allows businesses to claim 100% of computer costs (including systems software) purchased after January 27, 2009 and before midnight, January 31, 2011.” (Canada Revenue Agency, 2010)

Furthermore, the limitations of the business computer hardware tax credit are:

“Include in Class 52 with a CCA rate of 100% (with no half-year rule) general purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data-processing equipment, if acquired after January 27, 2009, and before February 2011. To qualify for this rate, the asset must also:

  • be situated in Canada;
  • not have been used, or acquired for use, for any purpose before it is acquired by the taxpayer; and
  • be acquired by the taxpayer:

o   for use in a business carried on by the taxpayer in Canada or for the purposes of earning income from property situated in Canada; or

o   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.”

This offer really helps our clients keep their IT systems up to date in tough economic times.  Our products and partnerships with all major vendors allow us to provide you with quality, reliable equipment with 3 year business class response times for warranty repair.  This includes an optional 4-hour onsite warranty option in the event of a mission-critical failure.

Sea to Sky will always find the best solutions for our customers.  While we do not have any control over this offer, we would like to urge all of our clients to talk to their accountant about this tax incentive.  The Sea to Sky team is devoted to client success.  We strive to provide the most efficient and economical solutions through our Research & Development and Business Continuity Practice methodologies.  If you have any questions about Sea to Sky Network Solutions or our Managed Service packages please feel free to contact our sales team at info@seatosky.com, or by phone at 604.628.6970

2 Comments

  1. I was wondering if individuals ( like teachers) could make use of this tax credit but it looks as though it is only for businesses. Is that the case? Thanks for your help. AMM

    • Hi Ann – sorry about the late response, for some reason your comment was caught as Spam and I just saw it!

      I know I missed the deadline to reply to you, but just a heads up that you were right, that credit was only applicable to businesses. Sorry about that!

      If you need help with anything in the future, please let me know.

      Thanks,

      Mike

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