Friday, January 30, 2009

100% Depreciation for Computers

As part of the new budget in Canada, it has been announced that computers purchased between Jan 27, 2009 and Feb 1, 2011 can be depreciated at 100% CCA. This means that computers are effectively treated as an expense and you can write them off in a single year instead of depreciating them over time. This would apply to both workstations and servers. Nice to see.

From a business perspective, it means that your taxes more closely match your cashflow. Or, if you finance, you get the tax writeoff before you are even done paying for them.

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