Canadian Finance Blog

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Tax Breaks 2010: Businesses and Individuals Posted: 18 Apr 2011 02:00 AM PDT The tax deadline is coming faster than anybody wants it to. The due date for filling out Canadian income tax returns is May 2, 2011 since April 30th is on a Saturday. As you’re filling out your tax return you should be aware of some of the tax breaks allotted to both individuals and businesses as they could save you a bunch of cash. Tax Cuts for Businesses • Computer Capital Cost Allowance (CCA). If your business bought new computers or purchased software for new or existing computers after January 27, 2009 but before midnight, January 31, 2011 than your business can claim 100% of the cost on your tax reruns. It is unclear whether or not smart phones and tablets, such as the ipad, would also be included. • Apprenticeship Job Creation Tax Credit (AJCTC). This is a non-refundable tax credit for up to $2000 for each apprentice an employer can claim. An apprentice is someone working in a prescribed trade for the first two years of their apprentice contract. Keep in mind the contract must be registered with a federal, provincial, or territorial government. • Investment Tax Credit for Child Care Spaces. Baby sitters and day care centres can become expensive and can also be a pain for their parent. As a result, some businesses have created child care spaces for the children of their employees. If your business has done this then you are eligible for a tax cut of a non-refundable amount for each new child care space you create • Small Business Deduction. Canadian private corporations claiming the small business deduction now have a tax rate of 11%, which is down from last years rate of 12%. • Corporation Tax Rate Reduction. As of January 1, 2010 the tax rate will be 18% for corporations but will decrease to 16.5% on January 1, 2011 and will further decrease to 15% on January 1, 2012. Tax Cuts for Individuals • Children’s Fitness Tax Credit. Fitness should be a part of everybody’s life, especially that of a child. If your own kids or the children of your spouse or common-law partner have been enrolled in gyms, play sports, or are involved in other fitness-related extra-curricular activities, you may be able to claim up to $500 per child on your tax returns. • First-time Home Buyer’s Tax Credit. If you bought a home for the first time in 2010 then you may be eligible for a tax credit up to $750. • Pension Income Splitting. If you choose to split your pension then you can reduce your overall tax paid. • Public Transit Tax Credit. Between car payments, insurance payments, gas, and repairs an automobile can quickly become a black hole for cash. If you opt out of using a car and instead take advantage of public transit then you may be eligible for a non-refundable tax credit to help cover the cost of public transit. • Tradesperson’s Tool Deduction. If you are a mechanic, plumber, electrician, or work as a tradesperson in general, you may qualify for a tax deduction for the cost of your tools. As you can see, there are a number of tax deductions and credits there for the taking. Look closely at what might apply to you. Author Bio: Charles Wood is a journalist and freelance author; when not contributing his financial savvy on the web, Charles writes poetry and fiction on his trusty typewriter. Related Posts: Tax Tips For 2010 Top Debt Relief Options for Small Businesses The Universal Child Care Benefit (UCCB) Explained Tax Breaks 2010: Businesses and Individuals originally appeared on Canadian Finance Blog on April 18, 2011.

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