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EISScan.com Ltd. has passed on the information to us about the Small Business initative to help stimulate business activity in all sectors. There has never been a better time than now to purchase an EIS device essentially for FREE. See the information provided and see how exciting this can be for your clinic. New Computers - New Printers - we can help you with the works. We would dare say loans from the banks may even be easier. It will be necessary to contact your accounting firm, so they are aware of the purchase and all receipts must be kept for the claw back at tax time. This is not something that will be reminded by the government, but is one of those programs that can slip through the cracks. We are happy to bring it to your attention and help you and your clients on your continued road to health. Of course, in purchasing using this program, we will stand behind you 100%. As always, all training is included with the full purchase price of our systems. Even more exciting for our “licensed health practitioners” the new ES Teck Complex system, which includes the Heart Rate Variability and SpO2 Oximeter qualifies for the program. This program is like the government giving you $25,000.00 for free ! ! | | New Capital Cost Allowance (CCA) Measures |
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The Budget for Canada Business intiative development. | What was announced? | | | | | • In general, under existing legislation, computers acquired after March 18, 2007 are eligible for a CCA rate of 55 percent computed on a declining balance basis.
• Budget 2009 includes the introduction of a temporary 100 percent capital cost allowance (CCA) rate for computers, printers, servers, storage, hardware accessories, and software acquired after January 27, 2009 and before February 1, 2011. |
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| What does this mean for our customers? | | | | | This 100 percent CCA rate is not subject to the half-year rule. As a result of this measure, a business will be able to fully deduct the cost of eligible computers, printers, servers, storage, hardware accessories, and software in the first year that CCA deductions are available. This will positively impact an organizations’ cash flow and generate significant tax savings. Businesses in all sectors of the economy, including the service sector, will benefit from this incentive. For example:
• Where the CCA rate is too low to reflect an asset’s useful life, this increase to the rate will reduce the tax burden on investment
• If a business is considering replacing computer equipment in the next 3-5 years, an investment now will allow them to fully realize significant tax savings, which can be reinvested or used to offset other costs that present themselves during this challenging economic period. |
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| What is eligible? | | | | | For this purpose eligible computers and systems software acquired by a taxpayer will be computer equipment and software described in Class 50 of Schedule II to the Income Tax Regulations. This is specifically described as:
• General-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment.
Additional Notes:
• Personal computers, printers, servers, storage, hardware accessories, and software are eligible
• Most leasing arrangements won’t qualify as the customer must take ownership of the equipment to realize the benefits of the new measure – however, in instances where a customer participates in an equal payment plan offers whereby the ownership transfer to the customer is immediate, the purchase does qualify for the 100% CCA allowance
• Eligible computers and systems software must be situated in Canada, used to earn income in Canada, and not previously used for any purpose before acquisition by the taxpayer for use in Canada. |
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