Anyways....other than the incorrect date stated in this video the following information is very important for business owners in the 2020 tax year. 𝙏𝙝𝙚 𝘾𝙍𝘼 𝙈𝙞𝙡𝙚𝙖𝙜𝙚 𝙍𝙖𝙩𝙚 𝙝𝙖𝙨 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙙 𝙞𝙣 𝟐𝟎𝟐𝟎:
58¢ / km for the first 5,000 km.
52¢ / km driven afterwards.
You can deduct your motor vehicle expenses if you meet ALL of the following conditions:
...If you were normally required to work away from your employer's place of business
...If you had to pay your own motor vehicle expenses and you were not reimbursed
...If you did not receive a non-taxable allowance for motor vehicle expenses
Completed Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
If you have received a non-taxable motor vehicle allowance but can prove that the employment-related motor vehicle expenses are much higher than the allowance, you can voluntarily include the amount of the allowance in income, you can deduct your motor vehicle expenses if points 1, 2, and 4 above are satisfied
Types of expenses you are eligible to deduct include:
- Fuel (gasoline, propane, oil)
- Maintenance and repairs
- Insurance
- Licence and registration fees
- Capital cost allowance
- Eligible interest you paid on a loan used to buy the motor vehicle
- Eligible leasing costs
IMPORTANT :
You can claim only the percentage of the vehicle that was used for earning an income. However, you must track both personal and business use to determine the percentage you can claim. Understand that CRA also considers driving back and forth between home and work as PERSONAL use.
For more information about allowable motor vehicle expenses, see Motor vehicle expenses:
How to File:
Complete Form T777, Statement of Employment Expenses, and attach it to your paper return
Enter the amount on Line 229 of your tax return
0 Comments