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.

In the market for a new car?  Did you know that the federal government wants to achieve, by 2035, 100% zero-emission vehicle sales.  Interim targets are that at least 20 percent of all sales are e-vehicles by 2026, and at least 60 percent by 2030.  To encourage those results, two federal programs are available to make those purchases easier.  And that’s good news because the average e-vehicle costs are still quite high; but the offset is lower driving costs.

Knowledge Bureau is pleased to introduce a new Diploma in Advanced Family Tax Compliance.  This comprehensive program is ideal for experienced tax accountants and wealth advisors who require updating in the latest  tax and economic changes from Finance Canada and CRA in order to help clients meet tax filing compliance requirements and family wealth planning objectives.  The program comprises of four online courses, 5 chapters each, and 4 virtual CE Summit events. A special introductory tuition offer is available until July 30.  Details below.   

Check out the outstanding pre-conference activities we have selected to enhance your experience in Montreal! Open to all 2024 Acuity Conference for Distinguished Advisor attendees and their companions. Space is limited, reserve now!

Thinking of enrolling employees for training this fall?  The Canada-Manitoba Job Grant will begin accepting applications July 24! But the grants go quickly so apply now if you are interested in enrolling employees in Knowledge Bureau training programs.  Up to $10,000 per individual can be received.  The grants are available in other provinces too, but with varying deadline dates. Details below:

CRA will start legal action to collect 9.53 billion in overpaid pandemic supports like CERB, Canada Recovery Benefits and Canada Recovery Caregiver Benefits. This is a very large number,  representing half of the amount of expected taxes to collected by the new capital gains inclusion rate increase to 66 2/3% over $250,000.  Are you or your clients feeling the pinch?  Here’s what to know to soften the blow:   

It just doesn’t seem right.  Canadian resident recipients of German Social Security – some now close to 100 years old -  have long been embroiled in a complex “give and take” when it comes to their pension eligibility and taxation.  In at least one case, the fight for tax fairness has caused on couple to pack up and leave the country, according to a tax professional who contacted us with the story.  Here are the issues and how to help: