Accounting News and What's New at Sabo Cross & Co.
2010 Personal Income Tax Updates:
Long-Haul Truck Driver Meal Deductions
• Higher long-haul truck driver meal deductions paid after March 18, 2007. This deduction is now at 75%, up from 70%.
Online Calculator for Payroll Deductions
• A newly revised online calculator for payroll deductions can be found on the CRA website at:
https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English
Registered Disability Savings Plans
• CRA Guide RC4460 provides information on Registered Disability Savings Plans (RDSPs) for persons up to age 59. This information includes what is an RDSP, what is a Canada Disability Savings Grant, who can become a beneficiary, how to open an RDSP, who can contribute to the RDSP, what are the contribution limits, how are payments from an RDSP reported, what happens if the beneficiary dies, when are repayments of grants and bonds required, and other matters.
http://www.cra-arc.gc.ca/E/pub/tg/rc4460/
The 2010 Federal Budget now permits an RRSP rollover on death to the RDSP of a financially dependant infirm child or grandchild.
Home Buyers Plan
• CRA Guide RC4135 discusses the Home Buyers Plan. The HBP allows an individual to withdraw funds of up to $25,000 in a calendar year from an RRSP to buy or build a qualifying home. This means spouses can contribute up to $50,000 on the purchase of their first home. The home can be for the individual, or it can be for a related person with a disability.
http://www.cra-arc.gc.ca/E/pub/tg/rc4135/
Simplified Logbook for Motor Vehicle Expense Provisions
• As of June 28, 2010 CRA has introduced a new simplified logbook for motor vehicle expense provisions. CRA will apply considerable weight to a logbook maintained for a sample period as evidence of a full year's usage if:
• The taxpayer has previously filled out and retained a logbook covering a full twelve-month period
• A logbook for a sample period of at least three continuous months in each subsequent year has been maintained
• The distances travelled for business use during the three-month period is within 10% of the figures for the same three-month period previously
• The annual business use of the vehicle in a subsequent year does not increase or decrease by more than 10%.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/mtr/typ-eng.html
A great online logbook can be found at:
http://odotrack.ca/
A great online automobile benefits calculator can be found on the CRA website at:
http://www.cra-arc.gc.ca/ebci/rhac/welcome.do
Universal Child Care Benefit (UCCB) for Single Parents
• Universal Child Care Benefit (UCCB) for Single Parents – Federal budget 2010 proposes to allow a single parent the option of including the UCCB amount in respect of all of his or her children, in the parent's income or in the income of the dependant for whom an Eligible Dependant Credit is claimed. If a single parent is unable to claim an Eligible Dependant Credit, he or she will have the option of including the UCCB amount in the income of one of the children for whom the UCCB is paid. This will apply to the 2010 and subsequent taxation years. This makes it beneficial for parents to apply for Social Insurance Numbers on behalf of their children from as early as birth, as the UCCB only applies on children up to 6 years of age.
Apprenticeship Grants
• Apprenticeship Grants- there are currently 50 trades included in the Red Seal Program on a national basis. A list of Red Seal Trades can be found at:
http://www.itabc.ca/Page496.aspx
• Apprenticeship Incentive Grant is a taxable grant of $1,000 per year up to a maximum of $2,000 per person, available to registered apprentices once they have successfully completed their first or second year/level of an Apprenticeship Program in one of the Red Seal Trades. Please note, there is a deadline to apply.
• Apprenticeship Completion Grant is a $2,000 taxable grant to encourage apprentices registered in designated Red Seal Trades to complete their Apprenticeship Program and receive their certification. This grant is available to apprentices who become certified journeymen/women in a designated Red Seal Trade and who obtain either the Red Seal Endorsement, or a provincial Certificate of Qualification. Please note, there is a deadline to apply.
Medical Expenses
• Medical expenses- The 2010 Federal budget does not allow medical expenses to be claimed for expenses incurred after March 4, 2010 for purely cosmetic purposes, including any related services and other expenses such as travel for these procedures. Both surgical and non-surgical procedures for enhancing ones appearance will be ineligible. However, an expense will continue to qualify as a medical expense if it is required for medical or reconstructive purposes, such as surgery to address a deformity, a personal injury resulting from an accident or trauma, or a disfiguring disease. A full list of allowable medical expenses can be found on the CRA website at:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwbl-eng.html
As well, a list of medical expenses which cannot be claimed can be found at:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ntllwbl-eng.html
Claiming Business Use of a Home Office
• Claiming business use of a home office- in order to be eligible to claim home office expenses for business use, certain criteria must be met, including the following:
• A workspace must be separate and designated in the home purely for business purposes and used exclusively for this.
• A person must meet clients at their home office and conduct business within this office space.
• Outside of this home office no other office space can be available for business use.
Long-Haul Truck Driver Meal Deductions
• Higher long-haul truck driver meal deductions paid after March 18, 2007. This deduction is now at 75%, up from 70%.Online Calculator for Payroll Deductions
• A newly revised online calculator for payroll deductions can be found on the CRA website at:https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English
Registered Disability Savings Plans
• CRA Guide RC4460 provides information on Registered Disability Savings Plans (RDSPs) for persons up to age 59. This information includes what is an RDSP, what is a Canada Disability Savings Grant, who can become a beneficiary, how to open an RDSP, who can contribute to the RDSP, what are the contribution limits, how are payments from an RDSP reported, what happens if the beneficiary dies, when are repayments of grants and bonds required, and other matters.http://www.cra-arc.gc.ca/E/pub/tg/rc4460/
The 2010 Federal Budget now permits an RRSP rollover on death to the RDSP of a financially dependant infirm child or grandchild.
Home Buyers Plan
• CRA Guide RC4135 discusses the Home Buyers Plan. The HBP allows an individual to withdraw funds of up to $25,000 in a calendar year from an RRSP to buy or build a qualifying home. This means spouses can contribute up to $50,000 on the purchase of their first home. The home can be for the individual, or it can be for a related person with a disability.http://www.cra-arc.gc.ca/E/pub/tg/rc4135/
Simplified Logbook for Motor Vehicle Expense Provisions
• As of June 28, 2010 CRA has introduced a new simplified logbook for motor vehicle expense provisions. CRA will apply considerable weight to a logbook maintained for a sample period as evidence of a full year's usage if:• The taxpayer has previously filled out and retained a logbook covering a full twelve-month period
• A logbook for a sample period of at least three continuous months in each subsequent year has been maintained
• The distances travelled for business use during the three-month period is within 10% of the figures for the same three-month period previously
• The annual business use of the vehicle in a subsequent year does not increase or decrease by more than 10%.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/mtr/typ-eng.html
A great online logbook can be found at:
http://odotrack.ca/
A great online automobile benefits calculator can be found on the CRA website at:
http://www.cra-arc.gc.ca/ebci/rhac/welcome.do
Universal Child Care Benefit (UCCB) for Single Parents
• Universal Child Care Benefit (UCCB) for Single Parents – Federal budget 2010 proposes to allow a single parent the option of including the UCCB amount in respect of all of his or her children, in the parent's income or in the income of the dependant for whom an Eligible Dependant Credit is claimed. If a single parent is unable to claim an Eligible Dependant Credit, he or she will have the option of including the UCCB amount in the income of one of the children for whom the UCCB is paid. This will apply to the 2010 and subsequent taxation years. This makes it beneficial for parents to apply for Social Insurance Numbers on behalf of their children from as early as birth, as the UCCB only applies on children up to 6 years of age.Apprenticeship Grants
• Apprenticeship Grants- there are currently 50 trades included in the Red Seal Program on a national basis. A list of Red Seal Trades can be found at:http://www.itabc.ca/Page496.aspx
• Apprenticeship Incentive Grant is a taxable grant of $1,000 per year up to a maximum of $2,000 per person, available to registered apprentices once they have successfully completed their first or second year/level of an Apprenticeship Program in one of the Red Seal Trades. Please note, there is a deadline to apply.
• Apprenticeship Completion Grant is a $2,000 taxable grant to encourage apprentices registered in designated Red Seal Trades to complete their Apprenticeship Program and receive their certification. This grant is available to apprentices who become certified journeymen/women in a designated Red Seal Trade and who obtain either the Red Seal Endorsement, or a provincial Certificate of Qualification. Please note, there is a deadline to apply.
Medical Expenses
• Medical expenses- The 2010 Federal budget does not allow medical expenses to be claimed for expenses incurred after March 4, 2010 for purely cosmetic purposes, including any related services and other expenses such as travel for these procedures. Both surgical and non-surgical procedures for enhancing ones appearance will be ineligible. However, an expense will continue to qualify as a medical expense if it is required for medical or reconstructive purposes, such as surgery to address a deformity, a personal injury resulting from an accident or trauma, or a disfiguring disease. A full list of allowable medical expenses can be found on the CRA website at:http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwbl-eng.html
As well, a list of medical expenses which cannot be claimed can be found at:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ntllwbl-eng.html
Claiming Business Use of a Home Office
• Claiming business use of a home office- in order to be eligible to claim home office expenses for business use, certain criteria must be met, including the following:• A workspace must be separate and designated in the home purely for business purposes and used exclusively for this.
• A person must meet clients at their home office and conduct business within this office space.
• Outside of this home office no other office space can be available for business use.
