Capital personal property

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Capital personal property

The general rules for claiming input tax credits (ITCs) for capital personal property such as computers, equipment, and office furniture are as follows:

  • if you use the capital personal property primarily (more than 50%) in your commercial activities, you can claim a full ITC
  • if you use the capital personal property 50% or less in your commercial activities, you cannot claim an ITC

Charities can claim a 50% public service bodies' rebate for the GST/HST paid or payable on those purchases of capital personal property that are not primarily for use in commercial activities.

Example

You buy a computer for $2,000 plus GST. You intend to use the computer 60% in your commercial activities and 40% for personal use. Since you will use the computer more than 50% in your commercial activities, you can claim the full amount of GST you pay as an ITC.

Note

Financial institutions have to claim their ITCs for capital property based on the actual extent of the property's use in commercial activities.

Capital personal property

Percentage of use in commercial activities

Corporations Partnerships Individuals Public service bodies Financial institutions
50% or less None None None None % of use
more than 50% 100% 100% 100% 100% % of use
Date modified:
2013-04-12