Accounting for that New Car Smell
Whether it's meeting with clients or delivering product, there is money to be made out on the open road — especially when it comes to tax write-offs like gas, maintenance, and even insurance. Everyday, thousands of Edmontonians are cashing in on the drive to work. And while some employees are lucky enough to have designated work vehicles, the majority balance their wheels between work and play.
Keep your finger on the odometer, and log accordingly. According to the CRA, you should be sure to record date, destination, purpose, and number of kilometers driven. It's also good practice to record that odometer at the start and end of your business's fiscal period for the reimbursement. And keep all your receipts.
When it comes to reimbursements for business, the 2015 CRA rates are $0.55 cents per kilometer for the first 5000 kilometres, and then $0.49 cents per kilometres driven after that. If you're looking for a great cost calculator online, the CAA offers a perfect tool here.
But how much is deducted for business and how much for personal? And how do those deductions apply to insurance and maintenance? Come in and ask us the next time you're in the office. We might not be able to balance your tires, but we can definitely balance them on paper.