So, you're on the road most of your day and supply your own vehicle. Are you being fairly compensated? What do you get?
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What is fair car allowance for business use?
- Thread starter JZ67
- Start date
All the plug in air freshers you need and unlimited supply of febreeze.
Read what your contract says and what the industry standard is. That's enough compensation.
I assume a hooker could make the same argument. She needs to supply condoms all day should she be compensated for those condoms?
500.00/mo. This year all of my jobs are close to home so its difficult to write off against the allowance. All that does anyway is lower my taxable income. FYI the CRA is cracking down on all of this big time, so don't be surprised if they want to check up your butt with a microscope and a flashlight. I had to hire an accountant and get all of my paperwork in order, including the T-777, which I didn't have to produce before.
I would assume said hooker built the cost of condoms into her cost model. So yes, she is being compensated for all the condoms she needs. Link, I appreciate your sarcasm and have enjoyed many of your posts as they have made me laugh. This wasn't your strongest argument, but that's ok - they can't all be gold.
I average just shy of 50k km per year and based on your numbers, you would pay $25k per year. Based on CRA numbers, $24,800. My current vehicle costs the company around $17k per year all in. I would think it makes more sense to do things as it is being done. Thanks for your help.
I can't complain about the 50 cents per KM but the CRA milks the rest of the company car system.
If you get a company car a sizable portion of the lease rate is a taxable benefit. This also includes a service van or lumber truck if you get to or have to drive it home. All because you have access to it.
If you live in a nice neighbourhood you or your neighbours may not want to see the service van but you have to pay for the privilege. Do you want to take the company tank out on a date or to pick up a loaf of bread?
If the company owns the van instead of leasing it's worse. There used to be a taxable benefit standby charge of 2% of the purchase price.
If the company gives you a $50,000.00 service van i.e. Sprinter there is a $1000.000 a month taxable benefit. Ten years later when the van is worth chump change the TB is still $1000.00.
I don't know if the rules have changed over the years but I got out of company owned / leased vehicles ages ago.
If you get a company car a sizable portion of the lease rate is a taxable benefit. This also includes a service van or lumber truck if you get to or have to drive it home. All because you have access to it.
If you live in a nice neighbourhood you or your neighbours may not want to see the service van but you have to pay for the privilege. Do you want to take the company tank out on a date or to pick up a loaf of bread?
If the company owns the van instead of leasing it's worse. There used to be a taxable benefit standby charge of 2% of the purchase price.
If the company gives you a $50,000.00 service van i.e. Sprinter there is a $1000.000 a month taxable benefit. Ten years later when the van is worth chump change the TB is still $1000.00.
I don't know if the rules have changed over the years but I got out of company owned / leased vehicles ages ago.
It's still current CRA rule.
Ya it's called a "standby benefit".
I had to reissue T4s to add the taxable benefit.
Then I sold the corporate vehicles and went to a per km charge for personal vehicles with a log.
Ya it's called a "standby benefit".
I had to reissue T4s to add the taxable benefit.
Then I sold the corporate vehicles and went to a per km charge for personal vehicles with a log.
2yammi4u
Well-known member
I get a kick in the ***!
