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MQ Accounting Professional Corporation
MQ Accounting Professional Corporation
"There are only two days in the year that nothing can be done. One is called yesterday and the other is called tomorrow." - Dalai Lama
MQ Accounting Professional Corporation
MQ Accounting Professional Corporation
Vehicle Series, Last Day and then itโ€™s road trip time ๐Ÿš—

Incorporated Companies, maybe buying a car outright or financing is not the best option for your business. For tax purposes a company can lease a vehicle and the allowable deduction is $800.00 of pre-tax lease payment. ๐Ÿ’ฐYou can of course get a vehicle that has a higher payment but the tax limitation is the $800.00. As seen earlier this week all fuel โ›ฝ๏ธis paid for by the corporation as the vehicle is used primarily for business operations.

The biggest issue with a corporation buying or leasing a vehicle is to watch out for those personal kilometres because the owner/shareholder or even employees for that matter may incur a taxable benefit by having privileges of using a company car personallyโ€ฆ.. but taxable benefits are for another day.๐Ÿ—“

Thanks for being my passenger this week.๐Ÿ‘‹

If you have any questions about your vehicle and your business please let me know.
๐Ÿ“ž 613-619-4400
๐Ÿ“ฉ info@mqaccounting.ca
MQ Accounting Professional Corporation
MQ Accounting Professional Corporation
Day 4: Vehicle Series ๐Ÿš˜๐Ÿš—
Incorporated Companies that own a vehicle. (Again there are multiple options here, let me explain!)

The company has just purchased a vehicle in the business name, it is used mainly for business deliveries and purchasing product. The company is the owner of the vehicle and is responsible for all costs for the vehicle. All fuel, repairs and maintenance, insurance and licensing costs are assumed by the company and are allowable expenses. The company can hold a loan for the financing of the vehicle and the interest is an allowable deduction for tax purposes.
MQ Accounting Professional Corporation
MQ Accounting Professional Corporation
Day 3:
Vehicle Series, pedal to the metal

Incorporated Companies ๐Ÿ“ฃ. There are a couple of vehicle options here so letโ€™s cover a shareholder using their personal car for business purposes first.
The shareholder can charge their incorporated company a kilometer rate as outlined by the Canada Revenue Agency. So itโ€™s necessary to track the business kilometers used on the vehicle. Essentially the owner would do an expense report to the business to get paid a mileage reimbursement which is TAX FREE to the owner and an expense for the company.

๐—ง๐—ต๐—ฒ ๐—–๐—ฅ๐—” ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿฌ-๐—ธ๐—ถ๐—น๐—ผ๐—บ๐—ฒ๐˜๐—ฒ๐—ฟ ๐—ฟ๐—ฎ๐˜๐—ฒ ๐—ฎ๐—น๐—น๐—ผ๐˜„๐—ฎ๐—ป๐—ฐ๐—ฒ๐˜€ ๐—ฎ๐—ฟ๐—ฒ: ๐Ÿฑ๐Ÿต๐—ฐ๐—ฒ๐—ป๐˜๐˜€ ๐—ณ๐—ผ๐—ฟ ๐˜๐—ต๐—ฒ ๐—ณ๐—ถ๐—ฟ๐˜€๐˜ ๐Ÿฑ,๐Ÿฌ๐Ÿฌ๐Ÿฌ ๐—ธ๐—ถ๐—น๐—ผ๐—บ๐—ฒ๐˜๐—ฒ๐—ฟ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐Ÿฑ๐Ÿฏ ๐—ฐ๐—ฒ๐—ป๐˜๐˜€ ๐—ฝ๐—ฒ๐—ฟ ๐—ธ๐—ถ๐—น๐—ผ๐—บ๐—ฒ๐˜๐—ฒ๐—ฟ ๐˜๐—ต๐—ฒ๐—ฟ๐—ฒ๐—ฎ๐—ณ๐˜๐—ฒ๐—ฟ.

The current and previous rates can be found here:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/automobile/automobile-motor-vehicle-allowances/automobile-allowance-rates.html
MQ Accounting Professional Corporation
MQ Accounting Professional Corporation
The CERB program is coming to an end at end of September and transitioning to an EI program.

More details to come and what it means for taxpayers.