1/3/2010
Tax Tidbits – January 2010
Some items of interest…
Additional CCA for Eligible Non-Residential Buildings
Eligible Non-Residential Building
The regular capital cost allowance (“CCA”) rate for property included in Class 1 is 4%. An election is available that could increase the CCA rate if the building is considered an “eligible non-residential building”.
An “eligible non-residential building” is essentially a building that is:
• Located in Canada
• Included in Class 1, and
• Acquired after March 18, 2007 for non-residential use.
Election
The election to include the building in a separate class would need to be made in a letter attached to the tax return, and must be filed by the filing due date for the tax year in which the building is acquired.
CCA Rates
If an election is filed, the CCA that can be claimed will be as follows:
- 10% (i.e. an additional 6%) if at least 90% of the floor space of the eligible non-residential building is used at the end of the taxation year for manufacturing and processing (M&P) in Canada.
- 6% (i.e. an additional 2%) if at least 90% of the floor space of the eligible non-residential building is used at the end of the taxation year for any non-residential use in Canada, and the building does not qualify for the M&P rate discussed above.
Note: The half-year rule applies to these additions and the 90% tests must be met at the end of each taxation year if the additional allowance will be claimed.
Mandatory Electronic Filing
Information Returns – Beginning in January 2010, if you submit more than 50 original information returns (slips), you will be required to file electronically using the Internet. Some of the common information returns include:
- T4 Statement of Remuneration Paid
- T4A Statement of Pension, Retirement, Annuity, and Other Income
- T5 Statement of Investment Income
- RRSP Contribution Receipts
- Tax Free Savings Account Annual Information Return
Corporation Tax Returns – For tax years ending after 2009, corporations will be required to file their T2 Corporation Returns using the Internet if gross revenues exceed $1 million.
Home Renovation Tax Credit
The deadline for the Home Renovation Tax Credit (“HRTC”) is quickly approaching. The HRTC is a non-refundable tax credit for eligible improvements to your home, condominium or cottage.
The HRTC applies to work performed or goods acquired after January 27, 2009 and before February 1, 2010 under an agreement entered into after January 27, 2009.
The tax credit can be claimed at a rate of 15% on eligible expenditures exceeding $1,000 and not more than $10,000. Therefore, the maximum tax credit per family is $1,350.
All claims should be made on your 2009 tax return.
For more information, please visit the HRTC section of the CRA website:
http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/menu-eng.html
|
