2010 & 2011 Tax changes

For Corporation:

1. General Rate Income Pool (GRIP) will be change to 70 per cent of full rate taxable income in 2011 from 69% in 2010 (2009 – 68%).
2. Computers and system software must be purchased before February 2011 to qualify for 100 per cent capital cost allowance.

For Personal:

1. The gross-up of eligible dividends is 44 per cent in 2010 (it was 45 per cent in 2009) and in 2011 it is reduced to 41 per cent.
2. In 2010, single parents will have an option to include their Universal Child Care Benefit in the income of a dependant.
3. The costs of some cosmetic procedures are ineligible medical expenses if paid after March 4, 2010.
4. Only 50 per cent (rather than 85 per cent) of U.S. social security is included in income if it began before January 1996.
5. There’s a new partnership information return for fiscal years ending in 2011.
6. Computers and system software must be purchased before February 2011 to qualify for 100 per cent capital cost allowance.