# 100% CCA for computers ends on Feb. 1



## plen (Nov 18, 2010)

For those business owners, just thought I'd remind you: 

Computers purchased between Jan. 27, 2009 and Feb. 1, 2011, are subject to a 100 percent capital cost allowance (CCA) rate (with no half-year rule). This means that you can deduct 100 percent of a computer purchase the year of purchase rather than simply deducting the amount that the computer has depreciated that year.

So if you have profits and are in the market for hardware/software/tablet, you might want to stock up before the end of the month.


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## Four Pillars (Apr 5, 2009)

plen said:


> For those business owners, just thought I'd remind you:
> 
> Computers purchased between Jan. 27, 2009 and Feb. 1, 2011, are subject to a 100 percent capital cost allowance (CCA) rate (with no half-year rule). This means that you can deduct 100 percent of a computer purchase the year of purchase rather than simply deducting the amount that the computer has depreciated that year.
> 
> So if you have profits and are in the market for hardware/software/tablet, you might want to stock up before the end of the month.


Thanks - maybe it's time to go shopping? 

I have to say, I really think they should make this rule permanent. I understand the logic in not allowing business owners to claim 100% of an expense for larger expense items that will depreciate over several years (like a car).

But, computers are not long term - I tend to buy cheap laptops and replace them almost every year. Claiming them over 2 years is a pain. 

Also - computers are cheap - who cares how people are writing them off? I paid around $650 each for my last 2 computers. It's just not worth the hassle. I'm thinking of buying a new pc - they have one on Best Buy for $368 that looks good. Let's call it $425 incl tax. That's not enough to warrant multi-year depreciation.

/end grumble


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## iherald (Apr 18, 2009)

Does this apply to passive businesses?


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## Four Pillars (Apr 5, 2009)

iherald said:


> Does this apply to passive businesses?


Why wouldn't it? A business is a business.


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## larry81 (Nov 22, 2010)

plen said:


> For those business owners, just thought I'd remind you:
> 
> Computers purchased between Jan. 27, 2009 and Feb. 1, 2011, are subject to a 100 percent capital cost allowance (CCA) rate (with no half-year rule). This means that you can deduct 100 percent of a computer purchase the year of purchase rather than simply deducting the amount that the computer has depreciated that year.
> 
> So if you have profits and are in the market for hardware/software/tablet, you might want to stock up before the end of the month.


too bad there no tablet worth my $$$ at the moment !


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## balexis (Apr 4, 2009)

Can you deduct a computer purchase made between jan 1st 2010 and feb 1 2011 in your 2010 tax report, or will it go in 2011 report only?


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## Cal (Jun 17, 2009)

Thx for posting that, I wasn't aware of that.


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## marina628 (Dec 14, 2010)

Four Pillars said:


> Thanks - maybe it's time to go shopping?
> 
> I have to say, I really think they should make this rule permanent. I understand the logic in not allowing business owners to claim 100% of an expense for larger expense items that will depreciate over several years (like a car).
> 
> ...


Depends on what sort of computer you have ,I have a web business and typically we pay $1900+ for our systems.The one I am using now is three years old and no issues.


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## Four Pillars (Apr 5, 2009)

marina628 said:


> Depends on what sort of computer you have ,I have a web business and typically we pay $1900+ for our systems.The one I am using now is three years old and no issues.


$1900 still isn't that much, which is what my point was.


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## sprocket1200 (Aug 21, 2009)

balexis said:


> Can you deduct a computer purchase made between jan 1st 2010 and feb 1 2011 in your 2010 tax report, or will it go in 2011 report only?


you need to talk to an accountant fast...


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## sprocket1200 (Aug 21, 2009)

larry81 said:


> too bad there no tablet worth my $$$ at the moment !


wow, do you really need us to post the apple website for you??


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## balexis (Apr 4, 2009)

sprocket1200 said:


> you need to talk to an accountant fast...


The Home Renovation Tax Credit covered the period between Jan 27 2009 and Feb 01 2010, and expenses done during the month of January 2010 had to be declared during the 2009 fiscal year. This kind of sounded like the same thing, hence my question.

Don't be such a smartass, sometimes people are not as stupid as you may think. On the other hand, you just showed without a doubt to everyone how great your contribution to this forum is. Good job, thanks!


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## plen (Nov 18, 2010)

balexis said:


> Can you deduct a computer purchase made between jan 1st 2010 and feb 1 2011 in your 2010 tax report, or will it go in 2011 report only?


All depends on your company's fiscal year. If your last fiscal year ended Dec 31, 2010 then a purchase now would have to be deducted against 2011 taxes.


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## balexis (Apr 4, 2009)

Plen, thanks for the reply. I am an independant contractor so fiscal year ends 31 dec, so I'll deduct the computer I'll buy next week in the 2011 fiscal year.


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## sprocket1200 (Aug 21, 2009)

plen explained it well, just like an accountant would. but then again, a great accountant would have given you **** for not coming to him earlier, hence my 'smart ***' comments. don't attack me because i point you in the right direction and teach you how to fish, instead of giving you the fish...

you will miss more opportunities than you can count by me telling you what to do rather than being able to think for yourself. but hey, i like making money off people like you, so i do owe you a big thank you...

besides, the home renovation tax credit was for personal taxes, not businesses. the computer one is different. i still think you need to talk to an accountant fast. oh, and don't go with a cheap one. if you find one you can't afford, use him. he will ensure you can afford him someday....

and no, don't buy that new truck this year, it is a waste of money...


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