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Most finance and IT teams sit down before the end of each calendar year to build a budget for new technology purchases for the upcoming year. Sometimes we overlook the everyday technology like laptops, desktops, and printers but they often represent a significant piece of your budget.

These assets typically stay on your books for 3-5 years, depending on their useful life, but in addition to increasing the productivity of employees, you can also save money… on your tax bill! 


Here’s how.

You can write off your purchase(s) as a depreciation, meaning you can avoid the oh-so-dreaded “Tax Man” and will be exempt from having to pay taxes on it. As a business—nothing sounds more like music to your ears than “depreciated assets,” am I right? 

Think about this: If you purchase $10,000 worth of equipment in December, you can claim double that amount in the FIRST year. BDO Canada writes “For businesses that are profitable, a faster write-off of expenditures for tax purposes means that there will be lower taxable income, and therefore a deferral of tax, in the year of acquisition of the capital asset.” (BDO Canada, Feb. 2019). And if that isn’t great news, we don’t know what is! 

Bottom line: if you know you need to make an investment and replace your equipment/technology within the next year, it’s better to do it in December than in January. If you’re going to have to make the investment regardless, you might as well get a full year’s benefit of tax depreciation.

Writing off a purchase as depreciation = avoid the Tax Man = a WIN for you and an excellent start to the year 2020. 

Interested in taking advantage of this tax break? Contact a Digitex Specialist today.