2009 Canadian Federal Budget & IT
One word…CCA.
OK technically it’s three words; Capital Cost Allowance, but that is beside the point. CCA’s have always been there, giving businesses the ability to write off a certain percentage of their assets due to depreciation. Now this makes sense as how like all things material, over time their value decreases, however up until now probably one of the most depreciable and biggest budget sinkholes of all businesses, the computer equipment, was only entitled to a measly 45% CCA rate. I say measly because the $1 500 computer you buy today will probably be worth less than $750 by the end of the year (if you could find someone to buy your used, coffee stained laptop that is).
So what does the 2009 Canadian Federal Budget have to do with any of this? Well starting January 27th, 2009 (the day the budget was released) until February 11th 2011, businesses are entitled to a 100% CCA rate! That’s right…100%! This means that all of the computer equipement that you buy within the next two years will be complete tax right-offs.
This also means however that you only have two years to bring your out-dated office up to speed before the tax-man tightens his grip….Time to get cracking…
