• Last Updated:
  • Jun 1st, 2006 6:11 pm
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[OP]
Member
Apr 10, 2005
276 posts
Montreal

Tax return

I need a little bit help. Now I just set up a company. Of course I need some office supply,such as printer,paper etc. When I buy these things, can I get tax free instantly?
4 replies
Newbie
Mar 9, 2006
46 posts
3 upvotes
No not instantly. You have to pay for the entire amount at the time of purchase. You should get a GST number if you don't already have one. You can get your GST back when you remit your GST. These items will become business expense and that's done when you file your return.
Deal Addict
User avatar
Aug 9, 2003
2349 posts
98 upvotes
Toronto
This is a good time to find yourself an accountant and follow his/her adivce.

If you're not familiar with all the tax implications of what you're getting into, you might be in for some rather nasty surprises next year.

--Pete
Remember: We elect the government we deserve.
Member
Nov 21, 2004
485 posts
9 upvotes
finddeals wrote:I need a little bit help. Now I just set up a company. Of course I need some office supply,such as printer,paper etc. When I buy these things, can I get tax free instantly?
Word of advice: when you are puchasing fixed assets (As opposed to day to day supplies), you need to classify them into asset pools called CCA pools, different assets goes into different pools and have different depreciate rates. For instance, a building depreciates at much slower rate than lets say your printer which could be in CCA class 45 - at 45% (it is just a coincident that class # and rate is the same), and half-yr rule apples to that so, lets say its $100, your CCA depreciation on first yr is (1/2 x $100 x 45%) = $22.5. You can claim this against your income. Accounting income is very different than taxable income.

I agree with the other guy, if it gets too complex, perhaps you should consult an accountant. CRA's penalties and interest is pretty steep, you don't want to be penalized for past amounts - especially since they tack on interest in arrears etc. on top of the amounts you underpaid.

My 2 cents.
Deal Addict
Sep 1, 2005
1493 posts
362 upvotes
Vancouver
G-Unit!! wrote: I agree with the other guy, if it gets too complex, perhaps you should consult an accountant.

judging by the OP's final sentence ("When I buy these things, can I get tax free instantly?")

i think its already too complex

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