Small business relief for computer compliance year 2000
The Year 2000 computer compliance problem presents a serious economic challenge for business owners in Canada. Business must act promptly to make the changes so problems do not occur in computer function in the Year 2000. The compliance problem is a design problem in software such as accounting systems and certain types of computer hardware including desk top computers, networks, microprocessor chips that control transportation systems, machinery, elevators, office equipment, lights, building climate and security systems.
Small business owners can claim accelerated capital cost allowance (CCA) deductions of up to $50,000 for computer hardware and software that is purchased to replace systems that are not yet compliant with the Year 2000. This allows small business to deduct 100% of the expenditures in the year in which they occur to bring their computers up to the Year 2000 standards. Specifically small and medium size businesses can accelerate the CCA on the cost of computer hardware and software acquired between January 1, 1998 and June 30, 1999 to replace equipment that is not Year 2000 compliant.
More information is available from your local Revenue Canada Tax Service Office.
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