Blog posts tagged in motor vehicle expense
The Department of Finance recently announced the income tax deduction limits and expense benefit rates applicable in 2018 when using an automobile for business purposes.
Most limits from 2017 will remain in effect in 2018. These limits include:
1. The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus federal and provincial or territorial sales taxes) for purchases after 2017.
2. The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month for loans related to vehicles acquired after 2017.
3. The limit on...
As a salaried employee, you may be able to claim a deduction for employment expenses if you incurred any of the following expenses: Accounting and legal fees: You can deduct any legal fees you paid in the year to collect or establish a right to collect salary or wages. You can also deduct legal fees you paid in the year to collect or establish a right to collect other amounts that must be reported in employment income even if they are not directly paid by your employer. Please note that you must reduce your claim by any amount awarded to you...
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...
June 28, 2010 – The CRA has just announced the introduction of a new simplified logbook for motor vehicle expense provision to ease the tax compliance burden of small and medium sized businesses.
This is one of the government’s steps to make it easier to do business in Canada. This new sample logbook was designed to help small and medium sized businesses to simplify record keeping, reduce paperwork and still provide accurate information for tax purposes. This latest effort came about as the government worked closely with the Canadian Federation of Independent Business or CFIB and other organizations to address the needs of...