Small Business Tax Tip # 1: Maximize your Capital CostAllowance claim.
Purchase necessary equipment and technology now rather than waiting for the new tax year to start. Although you’ll only be able to claim 50 percent of the normally allowable Capital Cost Allowance on your new assets, you’ll still be increasing your Capital Cost Allowance for this tax year – and setting yourself up for an increased CCA claim in the following tax year.
Generally, on the sale of capital property, capital gains rules apply, and you will be taxed on half of total gain. Luckily, there is some tax relief when it comes to your principal residence. Your principal residence is the place where you and your family ordinarily inhabited during the year. It can be any of the following types of housing units: