Class 52 CCA Expires Jan. 31, 2011
Author: Brad Howland
First Posted: Jan. 14, 2011
Purchase new computer hardware for your business before the end of January to claim a full deduction for it on your 2011 income tax return.
Class 52 is a special class for computer hardware created by CRA that allows self-employed taxpayers to claim the full price paid for new computers purchased between January 27, 2009 and February 1, 2011 as a deduction on their income tax returns. Time is fast running out for this class. If you were planning on upgrading your computers in the near future it is probably worth doing before the end of the month.
The deduction is allowed for:
...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, but not including property that is principally or is used principally as:
- electronic process control or monitor equipment;
- electronic communications control equipment;
- systems software for equipment referred to in 1. or 2.; or
- data handling equipment (other than equipment that is ancillary to general-purpose electronic data-processing equipment).
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;
- 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.