tag:blogger.com,1999:blog-4402283548766807872.post7986616596988506012..comments2024-03-14T19:35:14.456-04:00Comments on The Blunt Bean Counter: The Taxation of AutomobilesThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger57125tag:blogger.com,1999:blog-4402283548766807872.post-51569876367498605832019-07-10T22:29:08.541-04:002019-07-10T22:29:08.541-04:00Hi Anon
you should speak to your accountant for a...Hi Anon<br /><br />you should speak to your accountant for assistance. My two cents is go back to your outlook or daytimer and fill in the gaps and use a map search to determine the kms drivenThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-74135729065315281222019-07-08T19:33:44.329-04:002019-07-08T19:33:44.329-04:00Hi BBC, I am a small incorporated business owner i...Hi BBC, I am a small incorporated business owner in a pickle. CRA wants to sample a years worth of our vehicle expenses and usage, for years leading up to this period of time and through it up to the middle of last year, I drove one of the company vehicles for a mixture of personal and business about 60% business...we have our own family car. We only kept a log for all of the vehicles collectively ...about 7 total. Its an activity log that has destinations (for pick ups,deliveries, not the service calls and sales calls)...but no kms, and only a date range that the activities occurred. We have to hand in the vehicle log for that period. They did not say that we have to hand in the log for this vehicle or that or asked who was driving them. What should I do, I mostly did deliveries and sales calls, during the sample period the vehicle I drove mostly was a full size SUV.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-71300341799554150512019-01-14T19:49:38.736-05:002019-01-14T19:49:38.736-05:00Hi Unknown
My experience has been the CRA is very...Hi Unknown<br /><br />My experience has been the CRA is very hardline on this issue and I have not heard of or seen this strategy. Good luck to the company, hope it works.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-72577539240443035742019-01-11T12:18:19.149-05:002019-01-11T12:18:19.149-05:00Hey Blunt Bean Counter,
I recently came across a c...Hey Blunt Bean Counter,<br />I recently came across a company that users did not have logs for their units. Got assessed the Maximum KM's of 20004. Now they are appealing (recommended from CPA firm) with the comment that there is a good chance on winning an appeal stating that the maximum is unreasonable and should be 30% of the total km's based on drivers 3 week sample, zero history on logs. <br /><br />Is this an actual strategy? I cannot find any comment on the internet that appealing a standby charge where the administrative policy of 20004 km's working. <br /><br />Have you heard of strategies where the appealing officer is more reasonable in this area?Anonymoushttps://www.blogger.com/profile/13168000001807756410noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-17758119482113775582018-06-27T21:01:34.615-04:002018-06-27T21:01:34.615-04:00Hi Anon:
I would suggest the answer is you do, si...Hi Anon:<br /><br />I would suggest the answer is you do, since you are trying to make the argument you are an employee, not just a shareholder. See this blog for a link and discussion on this issue. http://www.thebluntbeancounter.com/2018/03/cra-information-requests-2018-update.htmlThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-30768986191384682212018-06-27T15:51:05.616-04:002018-06-27T15:51:05.616-04:00Hi Mark,
I love your blog and have sent several p...Hi Mark,<br /><br />I love your blog and have sent several people to it.<br /><br />If your a shareholder of a corporation, but also an employee (you deduct office expenses, portion of meals, etc), do you have to fill out the T2200 form? I figured you dont because the employer is yourself<br /><br />Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-36337819741594615152018-02-27T22:35:32.972-05:002018-02-27T22:35:32.972-05:00Hi Anon, sorry don't know the answer off the t...Hi Anon, sorry don't know the answer off the top of my head.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-32546290743832065542018-02-26T19:40:08.188-05:002018-02-26T19:40:08.188-05:00Here's a situation that I cannot find an answe...Here's a situation that I cannot find an answer for. What if multiple employees drive one corporate vehicle. Lets say the vehicle does a total of 12 thousand kms per year. Employee A drives 4 thousand kms of which 3 thousand is business and Employee B drives the remaning 8 thousand of which only 1 thousand is business. Am I correct in assuming that they both have to claim separate benefits based on the following ratios? Employee A at 75% business and employee B at 12.5% business? Thus employee B would be hit with the much larger benefit?<br /><br />Have you seen such a situation?<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-5932961438097801552018-02-23T19:13:17.323-05:002018-02-23T19:13:17.323-05:00See page 5 of this BDO auto tax bulletin https://w...See page 5 of this BDO auto tax bulletin https://www.bdo.ca/BDO/media/Public/Automobile-Expenses-and-Recordkeeping_2018.pdfThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-30266549257365764212018-02-23T12:50:13.154-05:002018-02-23T12:50:13.154-05:00Thank you. We are a young company trying to estab...Thank you. We are a young company trying to establish policy. Is there any concern with CRA if the entire 100km was reimbursed? Would they view the 10km as personal? I've been trying to find a clear answer on this topic, without much luck. Any insight that you could provide would be appreciated. Thanks! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-68537727576276585902018-02-22T22:15:12.706-05:002018-02-22T22:15:12.706-05:00Sorry, cant answer that question, it is a function...Sorry, cant answer that question, it is a function of your employers car expense policyThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-36184270493968956072018-02-22T19:49:10.716-05:002018-02-22T19:49:10.716-05:00Hello,
Came across this page in a search for inf...Hello, <br /><br />Came across this page in a search for info on personal vs business use of a personal vehicle. Scenario: employee drives to work, to an office (a regular place of employment) everyday in their personal vehicle, say 10km round trip. One day, the employer asks employee to go to a different location for a meeting. Employee incurs 100km round trip (from home to meeting location and back to home). What should the employer reimburse the employee for mileage? The full 100km? Or only 90km, on the assumption that the employee has to drive 10km everyday from home to office, and therefore that portion/amount is considered personal? Should there be a deduction in the employee's reimbursement for the employee's regular 10km each day, even though employee did not come into the office, but drove straight from home to meeting location?<br /><br />Thanks! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-40290341005649325882017-05-27T00:37:20.106-04:002017-05-27T00:37:20.106-04:00Hi Anon
I have not had anyone fight tolls, so I h...Hi Anon<br /><br />I have not had anyone fight tolls, so I have no personal experienceThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-9013528382521402162017-05-26T08:58:53.770-04:002017-05-26T08:58:53.770-04:00Hello,
I know this post is old but I've also ...Hello,<br /><br />I know this post is old but I've also recently been denied highway tolls as an employment expense by the CRA because it's a "personal choice". I cited the court case above in a letter to argue the denial but the CRA has still denied the expenses. Has anyone had any luck winning this argument with the CRA?<br /><br />Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-45396092741500222312016-05-11T21:30:41.080-04:002016-05-11T21:30:41.080-04:00I think you asked the same question earlier today ...I think you asked the same question earlier today on the audit blog, see that answer.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-31601258069887542462016-05-11T10:42:55.119-04:002016-05-11T10:42:55.119-04:00Good morning, Mark.
I asked this question in an ...Good morning, Mark. <br /><br />I asked this question in an older post, but I will repose it here, as this seems to still be an active thread. <br /><br />My question is how a CRA auditor would determine personal use kilometers when no log or record has been kept. <br /><br />In this particular case, the employee claimed 1500 personal use kilometers, and had a very small stand by and operating charge. This was demonstrably false, as the employee has a 50km round trip from his home to office, so just that personal use would amount to at least 9600 km per year. Additionally, he has no personal vehicle, so all his driving is done in this personal truck. <br /><br />This individual has no log whatsoever. <br /><br />When challenged by a CRA auditor about he amount of personal use kms, he will be unable to substantiate his claim in any way. <br /><br />With the CRA having no basis for determine the amount of personal kms used, how do they proceed? Is there a standard formula they use in cases like this (ie they deem 50% to be personal use)? Or do they assume it is 100% personal use, and the onus is on the employee to reduce that amount by providing as much proof as possible? Or something else?<br /><br />Furthermore, can you comment on possible consequences for an employer in a situation like this? The employer would have known that the amount being claimed as personal was a drastic misrepresentation.<br /><br />Thank you kindly for your (blunt) useful advice! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-24232214232534038192016-03-19T11:31:48.166-04:002016-03-19T11:31:48.166-04:00Did not know that, thxDid not know that, thxThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-56314823687106399792016-03-19T11:21:28.970-04:002016-03-19T11:21:28.970-04:00CRA is now disallowing Highway Tolls as an "o...CRA is now disallowing Highway Tolls as an "option" saying other possible routes without tolls exist and could have been taken. They are exceeding their remit yet again. In LeRiche v. The Queen, 2010 TCC 416 the Judge stated “the Court must not second-guess the business judgment of the taxpayer. … to effectively carry on his operations."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-26630484196752990222016-03-18T21:34:56.437-04:002016-03-18T21:34:56.437-04:00Hi Unknown
If u have a professional appraisal, th...Hi Unknown<br /><br />If u have a professional appraisal, that should be sufficient for the CRA.I will not comment on whether there are any tax issues u need to consider if you transfer the truck, since you should discuss this with your accountant.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-12608869017904660132016-03-18T17:58:08.877-04:002016-03-18T17:58:08.877-04:00I am a new business owner. I have 2 personally ow...I am a new business owner. I have 2 personally owned vehicles, a car and a truck I use solely for business purposes. I want to add the truck to my company's assets but I am unsure of what value to use... it is a 1993 truck but in top condition and I had it professionally appraised at $16,000. Can I use this value?Anonymoushttps://www.blogger.com/profile/00712610378905281301noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-90862938866282431002016-01-08T13:57:49.163-05:002016-01-08T13:57:49.163-05:00Hi Unknown
Speak to your accountant, this is not ...Hi Unknown<br /><br />Speak to your accountant, this is not a simple answer as there are various factors including restriction on lease costs, let alone personal vs business and where the expenses were paid from.<br /><br />The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-79731824589406884792016-01-08T13:47:33.736-05:002016-01-08T13:47:33.736-05:00As a shareholder who owns a vehicle used for busin...As a shareholder who owns a vehicle used for business that claims motor vehicle expenses (fuel, r&m, parking, insurance etc) in the corporation against my shareholder loan is it possible to include the lease payments as an expense in the corporation against my shareholder loan or should that be claimed on my personal tax return? Thxanonymoushttps://www.blogger.com/profile/06088673432106282909noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-81083989686996485112015-11-17T20:40:05.368-05:002015-11-17T20:40:05.368-05:00yesyesThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-17771224866021987162015-11-17T15:18:09.457-05:002015-11-17T15:18:09.457-05:00If you rent a car, do you need to keep a mileage l...If you rent a car, do you need to keep a mileage log book against each rental? I am debating on doing a monthly rental instead of leasing a car as a commissioned salesperson with a T2200...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-81091778302799185962015-10-25T16:38:34.943-04:002015-10-25T16:38:34.943-04:00Hi David
First of all, the automobile allowance r...Hi David<br /><br />First of all, the automobile allowance rates for 2015 are:<br />•55¢ per kilometre for the first 5,000 kilometres driven; and<br />•49¢ per kilometre driven after that.<br /><br />Secondly, I dont provide tax planning advice on this blog, that being said I have seen your suggestion used by others.<br />The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.com