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.

New Liskeard, Ontario’s Collette Maurice recently completed the T1 Professional Tax Preparation – Basic course to obtain a better understanding on completing basic tax returns.

Controversy has erupted in the news this week over the potential lost government revenues 50 years from now, due to the prospect of doubling of Tax Free Savings Account (TFSA) limits in the future. 

Never under-estimate the blinding power of new love or the obligations to a scorned ex-wife. . .even after death. 

What does an employer do if over deductions are discovered?

When working with your clients, remember that you are their trusted advisors and know more about their financial affairs than their family and friends.

Taxpayers and their advisors may consider this question more frequently as CRA pushes for more electronic communications, such as the provision of email addresses on this year’s tax return.