Updated Business and Professional Income Guide Released

Canada Revenue Agency has released the 2011 version of the Business and Professional Income guide, which provides guidelines on reporting business or professional income for 2011. The guide updates three areas that affect the filing of returns for the self-employed for 2011.

Filing Requirement for Partnerships

Beginning in 2011, partnerships with less than six partners are no longer exempt from filing a T5013 Partnership Information Return.Instead, the requirement for filing the T5013 is based on the financial activities and nature of the partnership. This means that some smaller partnerships that have assets in excess of $5 million or have transactions (revenue plus expenses) in excess of $2 million will now be required to file returns.Likewise, all partnerships that have a partner that is another partnership, a corporation or a trust will be required to file a T5013. On the other hand, larger partnerships that do not meet these requirements but were required to file a T5013 in prior years may now be exempt from filing the form.

Temporary Hiring Credit for Small Business

Small businesses whose 2010 Employment Insurance premiums were $10,000 or less may be eligible for a credit up to the maximum of $1,000 against their increase in EI premiums for 2011 over those paid in 2010.

Manufacturing and Processing ó Accelerated CCA

The class 29 (straight line, 50% rate)inclusion of manufacturing and processing equipment has been extended to include eligible machinery that becomes available for use in 2012 and 2013. Such equipment would normally be included in class 43 (30% rate, declining balance).