Do you want to save money on your home expenses? Take a look at some common ways to cut back on your home expenses… https://t.co/8SI0fLyziz
Running a Business: Vehicle Operationsin Tax Advice Information and Updates
Vehicle expenses are typical deductions for most businesses as most business owners require a vehicle to travel to and from offices, pick-up supplies and meet with clients.
Vehicle expenses can be reported in 2 ways:
1. By mileage
2. By actual cost
If you own the vehicle personally, you will need to keep a mileage log to determine the amount of kilometers you travelled for business. This way the company can reimburse you the prescribed rate per kilometer. Note that the prescribed rates change so it is always good to check the current rates for reimbursement of mileage.
If the company owns the vehicle but is also for personal use, it is also recommended that you use a mileage log to determine which portion of the vehicle expenses are for business and for personal use.
When keeping a mileage log, remember to keep separate ones for each vehicle. The log should record the date of each business trip, destination, reason for the trip and the kilometers driven. Also, don’t forget to record the odometer reading at the beginning and end of each year to determine the total kilometers driven in the fiscal year.
Once you have maintained a log for a full 12-month period, the CRA has indicated that they would “afford considerable weight” to a log maintained for a “sample period” as evidence of the business use for a full year, if it meets the required criteria.
- Importance of keeping your minute book up to date
- Validating your eligibility for benefits & credits...