Tax Tidbits

Universal Child Care Benefits (UCCB)

Single parents (as of December 31, 2010) may choose to include all UCCB payments received in 2010 in the income of their dependants.

Ontario Sales Tax Credit

The Ontario Sales Tax Credit is now issued as quarterly payments (based on the prior year’s tax return) instead of as a refundable tax credit on your T1 return.

Retiring Allowances

Starting for the 2010 taxation year eligible and non-eligible retiring allowances will be reported on the T4 instead of on a T4A.

Dividends

The gross up of dividends decreases from 145% to 144% and the Federal eligible dividend tax credit decreases to 17.9739%.

Donations

Visit http://www.youtube.com/user/CanRevAgency for tips on making wise Charitable donations.

ITC on Passenger Vehicles

There is a maximum capital cost on which an ITC may be claimed for a passenger vehicle.  For 2001 and later years, this maximum is $30,000. For partnerships and individuals in Ontario, the rate for a year end after July 1, 2010 is 13/113, even if only GST was paid on the purchase of the vehicle prior to July 1, 2010.

% of use in
commercial
activities
General registrants
(corporations) and
public service bodies
GST/HST registered
individuals and
partnerships
Financial
institutions
< 10% No ITC No ITC ITC = actual
% of use
> 10% up to 50% No ITC CCA based ITC(1) ITC = actual
% of use
>50% and < 90% Full ITC(2) CCA based ITC(1) ITC = actual
% of use
> 90% Full ITC(2) Full ITC(2) ITC = actual
% of use

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