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.

According to Maria Cannizzaro of Montreal, PQ, the T2 Corporate Tax Preparation for Micro Business Course taken with Knowledge Bureau is the “most exciting and motivating course” she has ever taken.

What inspires you to set the principles and goals that will guide your achievements in 2015 and redefine your professionalism?

Recently CPP and OAS rate changes were announced for January 2015. 

With mixed feelings of elation and dread, accounting, bookkeeping and tax specialists across Canada begin the annual ritual of preparing for 26 million tax returns. 

  Reasonable motor vehicle allowances are not taxable if it is reasonable.

Some employee taxable benefits are subject to GST/HST, while others are not.