Tax season is upon us again and there are a few changes that may be of interest to you.
The small business corporate tax rate is reduced.
The small business corporate tax rate was reduced to 10%
The Climate Action Incentive
The average household in Ontario will receive an incentive of approximately $300.
Accelerated capital cost allowance (CCA) rates.
The change takes effect for purchases of depreciable equipment (ie: computers or furniture) made on or after November 21, 2018 and before 2024 and will affect the amount that may be claimed on the 2018 tax return. The “Accelerated Investment Incentive,” allows for 150% of the normal CCA rate to be claimed. (That’s triple the normal).
Veterans retirement income security benefits qualify for pension splitting.
Retirement income security benefits received by veterans are eligible for pension income splitting. This provision is retroactive to 2015.
THE NOT SO GOOD
Transit deduction has been eliminated (except for seniors).
If you are looking for a full list of all tax law changes visit the Canada Revenue Agency website.