Navigating Auto Expense Deduction at Year End: What Clients Need to Know

Doubtless you’ve had clients ask whether they can write off any portion of their vehicle for work or business purposes. And your answer, as always, is: “It depends.” The rules are worth reviewing at year end as they can vary significantly depending on how the client earns their income—employee, self-employed, or incorporated – and this is a deduction that’s often audited. Here’s a practical primer to guide that conversation.

Legislation proposed on December 9 will increase the Basic Personal Amount (BPA), the maximum Spousal Amount claim, and the maximum claim for an eligible dependant. How much are these claims worth to you? We reveal the real dollar values here today.

Did you calculate whether a December 15 instalment remittance was required to top up tax pre-payments for the 2019 tax year? At this busy pre-Christmas time, it is easy to miss. For these reasons, it is so important to plan your charitable donations now and make them before year-end. They could help you reduce the amount you will owe. The big issue: the interest costs you may have to pay in the spring if you are deficient. Here is what you have to know.

A year-end reflection on the evolution of Canada’s tax system has brought some sobering observations and a special wish. Despite a dramatic shift in our economic landscape, our tax system is neither simpler or more competitive, nor is it necessarily fairer. There is much work to do.

At 8 pages, the 2019 T1 return is the longest tax form in history.  It could also be the most complex, says Evelyn Jacks, President of Knowledge Bureau, who together with special guest experts, will be hosting a 6 city national education tour in January to teach professionals about the changes to the forms, line numbers and the detailed legislation behind them. 

Keep up your credentials in 2020. If you are a Knowledge Bureau designate, be sure to update your status as per our Standards of Conduct, which require relicensing to use the designation marks at year-end. You should have received your re-licensing notice by now; if not please contact us before the holidays.

On December 9,2019, the new government has introduced the legislation to implement changes to the Basic Personal Amount (BPA). This is a broad-based tax change that should put more money into employees’ pockets every payday, and help to reduce quarterly or annual instalment remittances for others. But, it’s all very complex and the changes are scheduled to begin in 2020. There is a spoiler alert, however.