diff --git a/src/Core.js b/src/Core.js
index 5148497..ed2257f 100644
--- a/src/Core.js
+++ b/src/Core.js
@@ -166,6 +166,20 @@ _html2canvas.Util.Bounds = function (element) {
   return bounds;
 };
 
+// TODO ideally, we'd want everything to go through this function instead of Util.Bounds,
+// but would require further work to calculate the correct positions for elements with offsetParents
+_html2canvas.Util.OffsetBounds = function (element) {
+  var parent = element.offsetParent ? _html2canvas.Util.OffsetBounds(element.offsetParent) : {top: 0, left: 0};
+
+  return {
+    top: element.offsetTop + parent.top,
+    bottom: element.offsetTop + element.offsetHeight + parent.top,
+    left: element.offsetLeft + parent.left,
+    width: element.offsetWidth,
+    height: element.offsetHeight
+  };
+};
+
 function toPX(element, attribute, value ) {
     var rsLeft = element.runtimeStyle && element.runtimeStyle[attribute],
         left,
@@ -295,14 +309,13 @@ function backgroundBoundsFactory( prop, el, bounds, image, imageIndex, backgroun
       if(prop !== 'backgroundSize') {
         left -= (backgroundSize || image).width*percentage;
       }
-
     } else {
       if(prop === 'backgroundSize') {
         if(bgposition[0] === 'auto') {
           left = image.width;
         } else {
           if (/contain|cover/.test(bgposition[0])) {
-            var resized = _html2canvas.Util.resizeBounds( image.width, image.height, bounds.width, bounds.height, bgposition[0] );
+            var resized = _html2canvas.Util.resizeBounds(image.width, image.height, bounds.width, bounds.height, bgposition[0]);
             left = resized.width;
             topPos = resized.height;
           } else {
@@ -335,6 +348,7 @@ _html2canvas.Util.BackgroundPosition = function( el, bounds, image, imageIndex,
     var result = backgroundBoundsFactory( 'backgroundPosition', el, bounds, image, imageIndex, backgroundSize );
     return { left: result[0], top: result[1] };
 };
+
 _html2canvas.Util.BackgroundSize = function( el, bounds, image, imageIndex ) {
     var result = backgroundBoundsFactory( 'backgroundSize', el, bounds, image, imageIndex );
     return { width: result[0], height: result[1] };
diff --git a/src/Parse.js b/src/Parse.js
index 5b9405c..f444255 100644
--- a/src/Parse.js
+++ b/src/Parse.js
@@ -48,16 +48,18 @@ _html2canvas.Parse = function (images, options) {
     }
   }
 
+  function capitalize(m, p1, p2) {
+    if (m.length > 0) {
+      return p1 + p2.toUpperCase();
+    }
+  }
+
   function textTransform (text, transform) {
     switch(transform){
       case "lowercase":
         return text.toLowerCase();
       case "capitalize":
-        return text.replace( /(^|\s|:|-|\(|\))([a-z])/g , function (m, p1, p2) {
-          if (m.length > 0) {
-            return p1 + p2.toUpperCase();
-          }
-        } );
+        return text.replace( /(^|\s|:|-|\(|\))([a-z])/g, capitalize);
       case "uppercase":
         return text.toUpperCase();
       default:
@@ -127,16 +129,16 @@ _html2canvas.Parse = function (images, options) {
     }
   }
 
-  function getTextBounds(state, text, textDecoration, isLast) {
+  function getTextBounds(state, text, textDecoration, isLast, transform) {
     var bounds;
-    if (support.rangeBounds) {
+    if (support.rangeBounds && !transform) {
       if (textDecoration !== "none" || Util.trimText(text).length !== 0) {
         bounds = textRangeBounds(text, state.node, state.textOffset);
       }
       state.textOffset += text.length;
     } else if (state.node && typeof state.node.nodeValue === "string" ){
       var newTextNode = (isLast) ? state.node.splitText(text.length) : null;
-      bounds = textWrapperBounds(state.node);
+      bounds = textWrapperBounds(state.node, transform);
       state.node = newTextNode;
     }
     return bounds;
@@ -149,7 +151,7 @@ _html2canvas.Parse = function (images, options) {
     return range.getBoundingClientRect();
   }
 
-  function textWrapperBounds(oldTextNode) {
+  function textWrapperBounds(oldTextNode, transform) {
     var parent = oldTextNode.parentNode,
     wrapElement = doc.createElement('wrapper'),
     backupText = oldTextNode.cloneNode(true);
@@ -157,7 +159,7 @@ _html2canvas.Parse = function (images, options) {
     wrapElement.appendChild(oldTextNode.cloneNode(true));
     parent.replaceChild(wrapElement, oldTextNode);
 
-    var bounds = Util.Bounds(wrapElement);
+    var bounds = transform ? Util.OffsetBounds(wrapElement) : Util.Bounds(wrapElement);
     parent.replaceChild(backupText, wrapElement);
     return bounds;
   }
@@ -195,7 +197,7 @@ _html2canvas.Parse = function (images, options) {
       }
 
       textList.forEach(function(text, index) {
-        var bounds = getTextBounds(state, text, textDecoration, (index < textList.length - 1));
+        var bounds = getTextBounds(state, text, textDecoration, (index < textList.length - 1), stack.transform.matrix);
         if (bounds) {
           drawText(text, bounds.left, bounds.bottom, ctx);
           renderTextDecoration(ctx, textDecoration, bounds, metrics, color);
@@ -947,14 +949,21 @@ _html2canvas.Parse = function (images, options) {
     return ctx.setVariable("globalAlpha", getCSS(element, "opacity") * ((parentStack) ? parentStack.opacity : 1));
   }
 
-  function setTransform(ctx, element, parentStack) {
+  function removePx(str) {
+    return str.replace("px", "");
+  }
+
+  var transformRegExp = /(matrix)\((.+)\)/;
+
+  function getTransform(element, parentStack) {
     var transform = getCSS(element, "transform") || getCSS(element, "-webkit-transform") || getCSS(element, "-moz-transform") || getCSS(element, "-ms-transform") || getCSS(element, "-o-transform");
-    var transformOrigin = getCSS(element, "transform-origin") || getCSS(element, "-webkit-transform-origin") || getCSS(element, "-moz-transform-origin") || getCSS(element, "-ms-transform-origin") || getCSS(element, "-o-transform-origin");
+    var transformOrigin = getCSS(element, "transform-origin") || getCSS(element, "-webkit-transform-origin") || getCSS(element, "-moz-transform-origin") || getCSS(element, "-ms-transform-origin") || getCSS(element, "-o-transform-origin") || "0px 0px";
+
+    transformOrigin = transformOrigin.split(" ").map(removePx).map(Util.asFloat);
 
     var matrix;
-    var TRANSFORM_REGEXP = /(matrix)\((.+)\)/;
     if (transform && transform !== "none") {
-      var match = transform.match(TRANSFORM_REGEXP);
+      var match = transform.match(transformRegExp);
       if (match) {
         switch(match[1]) {
           case "matrix":
@@ -970,14 +979,14 @@ _html2canvas.Parse = function (images, options) {
     };
   }
 
-  function createStack(element, parentStack, bounds) {
+  function createStack(element, parentStack, bounds, transform) {
     var ctx = h2cRenderContext((!parentStack) ? documentWidth() : bounds.width , (!parentStack) ? documentHeight() : bounds.height),
     stack = {
       ctx: ctx,
       opacity: setOpacity(ctx, element, parentStack),
       cssPosition: getCSS(element, "position"),
       borders: getBorderData(element),
-      transform: setTransform(ctx, element, parentStack),
+      transform: transform,
       clip: (parentStack && parentStack.clip) ? Util.Extend( {}, parentStack.clip ) : null
     };
 
@@ -1006,16 +1015,26 @@ _html2canvas.Parse = function (images, options) {
     return backgroundBounds;
   }
 
-  function renderElement(element, parentStack, pseudoElement){
-    var bounds = Util.Bounds(element),
+  function getBounds(element, transform) {
+    var bounds = (transform.matrix) ? Util.OffsetBounds(element) : Util.Bounds(element);
+    transform.origin[0] += bounds.left;
+    transform.origin[1] += bounds.top;
+    return bounds;
+  }
+
+  function renderElement(element, parentStack, pseudoElement) {
+    var transform = getTransform(element, parentStack),
+    bounds = getBounds(element, transform),
     image,
     bgcolor = (ignoreElementsRegExp.test(element.nodeName)) ? "#efefef" : getCSS(element, "backgroundColor"),
-    stack = createStack(element, parentStack, bounds),
+    stack = createStack(element, parentStack, bounds, transform),
     borders = stack.borders,
     ctx = stack.ctx,
     backgroundBounds = getBackgroundBounds(borders, bounds, stack.clip),
     borderData = parseBorders(element, bounds, borders);
 
+
+
     createShape(ctx, borderData.clip);
 
     ctx.save();
diff --git a/src/renderers/Canvas.js b/src/renderers/Canvas.js
index b198be2..a6f7197 100644
--- a/src/renderers/Canvas.js
+++ b/src/renderers/Canvas.js
@@ -85,7 +85,9 @@ _html2canvas.Renderer.Canvas = function(options) {
       ctx.save();
 
       if (storageContext.transform.matrix) {
+        ctx.translate(storageContext.transform.origin[0], storageContext.transform.origin[1]);
         ctx.transform.apply(ctx, storageContext.transform.matrix);
+        ctx.translate(-storageContext.transform.origin[0], -storageContext.transform.origin[1]);
       }
 
       if (storageContext.clip){