work (2)

Work Vehicle Tax Tips

FAQ

>
>
> -----Original Message-----
> Sent: Monday, January 16, 2023 6:23 AM
> To: Timothy Ross <advisor@timothyross.com>
> Subject: Business Vehicle?
>
> Hi Tim,
>
> We are currently in the process of buying a new vehicle. It will be
> used for our business as well as personal use. Business wise, to pick
> up smaller materials or tools, driving to estimates where ladders are
> not required, etc.
>
> My question is this: what parameters would need to be met for us to be
> able to make the vehicle payments and fuel a business expense & make
> sure everything is being written up by the book?

> On Jan 16, 2023, at 6:50 AM, advisor@timothyross.com wrote:
>
> Good morning and Happy New Year !
>
> For vehicles with mixed use, you need to keep a log book to track
> personal vs business. You keep track of all expenses, then we do a
> calculation at year end to determine how much is deductible.
>
> The truck can be owned personally or by the business. Check with your
> insurance company for coverage, also financing can be an issue,
> company credit is sometimes harder to get than personal, especially in
> a companies early start-up stages.
>
>
> If the truck is owned personally, you also have the option of charging
> the business by the km for the usage.
>
> It's 59 cents per km in 2023
> https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue -agency-cra/travel-directive/appendix-a-cra-kilometric-rates-jan-2023.html
>
> With that option you don't have to track expenses as diligently,
> however it is a good policy to know what your spending. Depending on
> usage, the best option can be selected later, the important thing is
> to track and log the usage.
>
> That should cover the basics on this.
>
> There is always a number of special twists and turns on this item.
> Please check out the official CRA link below.
> https://www.canada.ca/en/revenue-agency/services/tax/businesses/small- businesses-self-employed-income/business-income-tax-reporting/business-expenses/motor-vehicle-expenses.html
>
> One other note, vehicle value is a consideration, the more expenses
> vehicles are sometimes restricted in how much can be deducted for
> depreciation purposes. The limit for 2022 was 30,000 plus tax.. Also
> there is a special accelerated depreciation rate effective June 2022 which is beneficial .
>
> This sounds like a car or suv, I would not put them in the company
> personally, less critical review by CRA, if it's a truck, then inside
> a corporation makes sense, and would help get around the valuation
> rule easier.
>
> I hope that helps. Once you get the purchase done, please send us the
> purchase and loan info for our tax files.
>
> One finally thought, there is a few online vehicle tracking software
> that you could invest in to help keep track of trips. The one I use is
> Mile IQ https://mileiq.com/
>
> Tim

***

Wow, thank you so much. This was really helpful.

It is an SUV so I think based on the info and your insight, it might be best for us to finance personally. I will continue to look into it and get all the appropriate forms to you once we have them.

Thank you again - this was so helpful! Happy new year to you as well!

All the best !

 

****

NOTE: please always check the comment section for additional resources that we may post down their later on this topic. ~ TLR

 

PS: We welcome your Google Review, please  click on this link  https://g.page/r/CXYJPvedYlz0EBI/review

 

Be sure and register to keep track of  your credit bureau, we use Borrowell for this free service https://improvingfutures.ning.com/blog/free-credit-check-borrowell

 

Timothy Ross, Family Advisor, CEO & Founder, Brock Shores Financial

Mutual Funds offered through PEAK Investment Services Inc.

Life & Travel,Insurance, Seg Funds & Banking offered through Financial Horizons Group

​This transmission is intended solely for the individual or entity to whom it is addressed and is confidential in nature. Please be advised that any distribution, reproduction or other use of this document by anyone other than the addressee is strictly prohibited. If you have received this communication in error, please notify us immediately. Thank you for your assistance.  Please feel free to share our contact info below with those who may benefit from our services. All rights reserved, Timothy Ross


Brock Shores Financial / Timothy Ross & Associates, Family Office Providing Omega Stewardship
​4502 Airport Road – Tincap, GTA Professional Center, Elizabethtown, Ontario K6T 1A2
​613-345-0016 Office 613-213-4625 Cell/Text 613-345-5231 Fax advisor@timothyross.com
​Executive Assistant: Heather Kiley heather@timothyross.com

Office Assistant: Tammy Abrams  assistant@timothyross.com
​Office Manager: Megan Ross megan@timothyross.com

Income Tax Associate: Kelly Potvin kelly@timothyross.com

Bookkeeping Associate:  Becky Eamon  becky@timothyross.com

Planning Associate Brock Shores Planning Corp:

Johanne Brennan johanne@timothyross.com  613-329-2310

 

Mission - Vision – Core Values

“Serving our clients and community since 1988”


OMEGA STEWARDSHIP
​* One Stop Process Driven Approach for Retirement & Income Planning
​* Personalized Tax Management Solutions for Individuals & Business Owners
​* Confidential Wealth Management Solutions
www.BrockShoresFinancial.ca www.TimothyRoss.com 

View our Blog: #ImprovingFutures www.ImprovingFutures.ca


Helping Families Achieve ... Life's Major Goals
​1. Tax Smart Planning & Investing
​2. Worry Free Retirement
​3. Education of Our Children & Grandchildren
​4. Quality Care for Our Parents
​5. Meaningful Financial Help for Our Loved Ones
​6. Meaningful Legacy


​Member of Advocis, The Financial Advisors Association of Canada
​Member of IFB, Independent Financial Brokers of Canada
​Member of RIA, Responsible Investment Association
​Paul Harris Fellow

 

PEAK Disclosure - Click here for Lots of Good Stuff

We value your business, please leave a review on our Bark profile

Leave your Review Here & Check Others
​ ​Have a Blessed Day! "People influence People”

Access Your Peak Accounts www.YourAdvisorCares.ca

Inspiration: www.YourAdvisorCares.com

 

 

Read more…

4 Day Work Week

A noble goal to only be working 4 days a week. 

We have set our office hours to be open Monday through Thursday when we are not in the heart of tax season.  We have been doing this for several years now. It works for our team. When ever I start finding I can't get everything done we start looking for a new team member. It's not a perfect solution, I would love a 3 day a week work week, however this has helped us grow and take better care of our clients. Team member can book personal stuff on their days off so that helps everyone focus when they are in. 

Personally I monitor usually everyday, as the owner, I rely on my team at Brock Shores Financial to serve our clients, to show up , to look for opportunities to bring value to our clients and to our company. 

My plan for this post is to accumulate info on the 4 day model, hopefully this resource will inspire, encourage and help reach this noble goal for others and ourselves.

 

https://www.youneedabudget.com/careers/

 

Read more…