Vehicle Taxable Benefit
September 20th, 2009
Question: What about my companies taxable benefit?
The company I work for is growing quickly, and I now have to track my mileage for a company vehicle, and expect to be taxed on it. My question is what about all the benefits my company gets from it's employees? We use our own credit cards to purchase gas and materials and frequently use our own internet and resources at home for administrative use.
Answer: An employee is taxable as employment benefit for using the company car for personal purposes.
On the other hand, your company should reimburse you for gas and material purchases used for company benefits. If not reimbursed, you may deduct your business related internet and resources at home as expenses. For any employee to be able to deduct expenses, a basic test must always be met: the employee must be required by the contract of employment to pay his/her own expenses. This means that the employee needs to ensure that their employer signs Form T2200, Declaration of Conditions of Employment, certifying that this requirement indeed exists. You can deduct supplies you have to pay for that are consumed in your employment duties. These include items such as:
·Paper
·Office supplies
·Long distance telephone call charges
·Cellular phone airtime
·Internet charges based on usage.
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The 2010 tax filing season officially is open, and if you helped the struggling American economy this year, Uncle Sam is going to help you.
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