![]() Immediate expensing of depreciable properties (businesses)īusinesses that purchase depreciable assets can fully expense the cost of these assets against their business income (100% depreciation rate). To be eligible, the travel must be at least 150 kilometres from their home to the work site. Tradespeople who work in the construction sector and incur out-of-pocket travel expenses to get to and stay at a work site their employer did not reimburse can claim a deduction for these travel expenses up to a combined maximum of $4,000. The maximum amount of expenses has doubled from $10,000 to $20,000. for a disabled individual (officially recognized by the CRA) or an older adult 65 years and older. This credit has doubled from $5,000 (actual credit of $750) to $10,000 (actual credit of $1,500).Ĭredit for renovation expenses incurred to make a home more accessible - such as railings in a bathroom, wheelchair ramps, etc. New tax credits to consider for 2022:Ĭredit for individuals who buy what the government considers a “first home” (did not live in a home you owned in the current year and the three prior years) in the tax year. Personal income tax credits are listed online by the CRA, and there is also an online overview of child and family benefits parents may wish to review as they do their taxes.Īmong a host of old tax credits, Gerry Vittoratos, a national tax specialist at online tax filing service UFile, has four new lesser-known credits people may wish to be aware of. This year’s Canada Revenue Agency (CRA) filing deadline for 2022 taxes is May 1. To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory in which the travel begins.By now, most Canadians will have received their income tax slips from their employers. Keep track of the number of kilometres driven during the tax year for your trips relating to moving expenses and northern residents deductions, or the 12-month period you choose for medical expenses. Your claim for vehicle expenses is the percentage of your total vehicle expenses that relate to the kilometres driven for moving or medical expenses, or for northern residents deductions.įor example, if you drove 10,000 km during the year, and half of that was related to your move, you can claim half of the total vehicle expenses on your tax return.Īlthough you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method, the CRA may still ask you to provide some documentation to support your claim. Keep track of the number of kilometres you drove in that time period, as well as the number of kilometres you drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. ownership expenses such as depreciation, provincial tax, and finance charges.operating expenses such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs.If you choose the detailed method to calculate vehicle expenses, you must keep all receipts and records for the vehicle expenses you incurred for moving expenses or for northern residents deductions during the tax year or during the 12-month period you choose for medical expenses. ![]() If you choose the simplified method, claim in Canadian or US funds a flat rate of $23 per meal, to a maximum of $69 per day (sales tax included) per person, without receipts. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim. ![]() ![]() If you choose the detailed method to calculate meal expenses, you must keep your receipts and claim the actual amount that you spent. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim. Simplified method – This method uses a flat rate for meals and vehicle expenses. Keep your receipts in case the CRA asks to see them at a later date. Include any travel expenses paid by your employer.ĭetailed method – This method allows you to claim the actual amount that you spent. Your total travel expenses equal the total of the value of travel assistance provided by your employer and the travel expenses incurred by you. To calculate meal and vehicle expenses, you may choose the detailed or simplified method. The following applies to the 2022 tax year. Meal and vehicle rates for previous years are also available. If you are an employer, go to Automobile and motor vehicle allowances. The rates for 2023 will be available on our website in 2024.
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