We hope you had a safe and enjoyable summer. There are only 4 months left to plan! The 2017 calendar year is quickly coming to a close. September is here, the summer has come to an end and the leaves are beginning to change colour. Change is inevitable, just like the weather. The best part about change is that it often is great, like the creative tax and financial planning services we offer our business and individual clients.
Remember to Purchase Your Eligible Assets Before Year-End
Whether you own a business or are an employee, the following is some money-saving advice regarding the purchase of fixed assets:
If you carry on a business and plan to purchase fixed assets eligible for CCA tax depreciation (capital cost allowance) for your business in the near future, consider doing so before the end of your fiscal year.
Fixed assets may include computers, furniture and fixtures, equipment, machinery, etc, to just name a few. Each type of fixed asset has a different depreciation rate as prescribed by CRA Canada Revenue Agency.
If the new assets are acquired and in use before your year-end, you can claim one-half the usual CCA rate. However, next year you could claim the full 100% portion of CCA rather than only the one-half amount.
Even if your business is in a loss position this year, purchasing the asset now will allow a full year’s CCA claim next year.
TAX TIP Do you know anybody who has or had fertility problems? The 2017 Canadian Federal Budget has proposed to allow medical expense claims for 2007 and later years for reproductive technologies where the patient does not have a medical condition preventing conception. Please contact us now for professional assistance regarding your personal tax situation.
Employees are entitled to claim CCA on three types of assets – automobiles, aircraft and musical instruments, depending on the circumstances. If you’re entitled to deduct CCA and considering purchasing a new asset, you should do so prior to the end of the year. This will accelerate CCA claims by one year.
TAX TIP If you want to claim CCA tax depreciation on your assets, please keep in mind that “title” to the asset must be acquired and it must be “available for use”. If you’re unsure how this all works, please feel free to contact us now.
We Will Help You
HALPERN Chartered Professional Accounting Firm is a full-service Tax, Accounting, Business Advisory and Financial Planning CPA firm. Accurate and timely information is only one piece of any effective solution. We are dedicated to bringing you all of the pieces together – knowledgeable and innovative advice, leading-edge technology, and a strong relationship with our clients. This type of creative thinking enables us to help you and your business organization to solve complex problems and significantly enhance your ability to improve performance, manage risk and build value.
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