I’m a sole proprietor of a consulting business and I am planning to upgrade my computer systems to take advantage of the tax break. Can I claim the full 50% tax break?
Yes, this should qualify, providing what you are upgrading is primarily computer hardware. This is depreciable under Division 40 of the Tax Act which is one of the eligibility requirements. Where there is any significant software expenditure included in the upgrade this may not be eligible unless it is loaded onto, and part of the hardware you are buying.
If you complete the purchase and install before the end of June you will get the tax deduction into the current year. If you install after June 30 but before 31 December then the 50% deduction will be in your 2010 year tax return.
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