Save your business money with the technology tax write-off.

Willingly, or thanks to the recession, more than two-million Canadians are now self-employed according to Statistics Canada, making this category of employment the fastest growing in the country.

To give small businesses a tax break and boost the economy, the federal government announced in last year’s budget a huge 100% capital cost write-off on computers and related software and peripherals purchased between January 27, 2009 and February, 2011. (In the past and after the program ends, capital cost allowances for computers will return to the declining-balance rate in which you deduct the cost of your business computers by a smaller percentage each year. Additional details about the new program are here.)

The tax deduction is timely news if you need to invest in technology and it’s a great way to reduce your company’s taxable income – but you can only take advantage of it until next February, so stop by your neighbourhood STAPLES or visit online to ramp up on computer purchases you may have put off until now.

There are more smart ways to save your company money.

Remember, it’s a great idea to consult an accountant about other deductions available to you. For example, if you work where you live, you can deduct the expenses in that part of your home in full (50% in Quebec) on utilities, property taxes, home insurance, mortgage interest and condo fees or rent.


According to Stephen Thompson, in 167 Tax Tips for Canadian Small Business 2009, you can even increase your mortgage to help finance your business startup.

“That portion of the mortgage interest that relates to the business is a business expense which you can deduct, regardless of whether or not your business is profitable.”

Know of any other smart ways to save more for your small business?

By Adam

February 17, 2010