Budget 2009 – What are the Tax Benefits?
Other than fiscal spending to stimulate the economy, spending on infrastructure and such, I am going to focus on the tax benefits introduced just yesterday in Jim Flaherty’s Budget 2009. It is important to note that, this budget has not been accepted by all parties, so all of the benefits stated below are “proposed”. We will wait and see, since we all know well that the 3 opposition parties are most likely to vote against it. Just in case some or all of this budget will get thru, here is a summary of what tax benefits it proposed.
Summary of Budget 2009 related to tax benefits:
Propose effective from Jan 1, 2009
- Basic personal amount (this is the amount of tax free money everybody is entitled): $10,320
- First personal income tax bracket, 15% tax rate: 20,000 to $40,726
- 22% tax rate: $40727 to $81,452
- Low income family can earn an additional $1894, and still receive maximum national child benefit
- Increase age credit by $1000
- 15% home renovation tax credit for spending from $1000 to $10,000
- Home buyer’s plan (HBP) can withdraw from RRSP limit from $20,000 to $25,000
- First time home buyer tax credit of 15% will be applied to a $5000, and $750 tax relief
- Corporate income tax rate to 19%
- Small business federal tax will be 11% with limit of $500,000 from $400,000
- 50% CCA rate to investment in manufacturing or processing machinery and equipment in year 2010 and 2011
- Two years 100% CCA rate for computers
- 15% mineral exploration tax credit extend to 2010
Reference: http://www.budget.gc.ca/2009/pdf/budget-planbugetaire-eng.pdf
