100% Tax Credit For Class 52 IT Purchases

Does your business need an IT upgrade?   This year is a great year to invest in your Information Technology, because the Canadian Government is extending a 100% Tax Credit on any computer equipment purchased from January 27, 2009  – January 31, 2011.

The tax credit is applicable to any purchase that falls into the Capital Cost Allowance, Class 52. This includes new workstations/computers, servers, laptops, printers and system software.  System software is a very expensive part of IT upgrades, so Canadian business owners should strongly consider the benefits of investing in IT during this tax credit time frame.

To qualify for the tax credit, your newly purchased 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;
• Be acquired by the taxpayer:
• 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
• 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.

Basically, if it is new, and being used for your business in Canada, you will enjoy a 100% tax deduction for your new computer equipment and software.  Call Tucu to get started on your 2010 IT Project.

Download a printable summary of this post here.

Have questions about your next IT project? Call us for a free consultation.  Toronto: 416.292.3300 | Durham: 905.233.4858.

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