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
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With an aging and retiring population, healthcare expenses in Canada are estimated to increase far faster than revenues.
Provinces are demanding more financial support from the Federal Government to increase its share of provincial-territorial healthcare costs from 22% to 35% to $28 billion annually. They also demand increased Canada Health Transfer (CHT) payments without stipulations, arguing they’re best placed to determine how to allocate any new funding.
Here is a sober thought. Imagine that Canada and the Provinces couldn't continue borrowing more each year. What would we do? Would we let health care collapse under increased demands, or would we make bold moves?
I would look at the following:
1)Do we have too many handlers handling healthcare?
The chart I have attached is an eye-soar. It also indicates how much we spend on our Federal and Provincial bureaucracy and whether 13 Provinces and Territories, each managing their own healthcare, makes sense.
2)Is Healthcare becoming the panacea for winning votes?
Healthcare is a growing tension point with voters. Governments promise more - pharmacare, dental care, mental health care, long-term care and primary care to ease the friction.
3)Are we focusing on accountability and efficiencies?
Are we obsessed with getting more health care for less or accepting less healthcare with more? Are our major infrastructure projects being delivered on time and to budget?
4)Should we consider a hybrid model where the wealthy can access private healthcare but, in doing so, benefit all others?
5)Should we reallocate our budgets? If universal healthcare is priority one and continues to cost more, and we can't borrow more, what will we give up?
6)Should we pay more taxes?
7)Should we have a quota system? Units of healthcare to be valued and invested wisely?
8)What role can technology and AI play in the home and virtual diagnostics to streamline only those patients who genuinely need access to healthcare?
9)What role can the pharmacy play as the neighbourhood hub for diagnostics and administration of primary healthcare?
My belief: Proactive versus reactive. We must assume that we will run out of borrowing capacity. In doing so, we free our minds to solve the growing demand for healthcare by putting the patient at the centre and driving efficiencies and bold thinking from the stethoscope back.
I have a podcast where I chat with inspirational people. If you want to hear a fantastic interview and ideas on how to save our healthcare system, my chat with Alika Lafontaine, President of the Canadian Medical Association, is worth a listen:
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