Blog posts tagged in vehicle expenses
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...
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...