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.

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