As a business expense, yes you can, but not on a personal return.
What’s the deadline for filing taxes in 2017?
For self-employed people and their spouses or common-law partners the deadline for filing their 2016 personal income tax return is June 15, 2016. If they owe money however, interest begins to accrue starting on May 1, 2017.
For everyone else the deadline is April 30, 2017.
If a person files their return late, and owes money, the late filing penalty is 10% of the amount they owe and interest accrues from May 1, 2017 to the date the amount is finally paid.
What do you consider the best way to track vehicle usage for business use if it is my own private vehilce?
CRA requires that people using their vehicle for business keep a log of their kilometres. Any journal will do but you should include the following information (from the CRA website) in the journal:
The best evidence to support the use of a vehicle is an accurate logbook of business travel maintained for the entire year, showing for each business trip, the destination, the reason for the trip and the distance covered.
It is always better to get a rent receipt from your landlord for income tax purposes when claiming rent credits with the CRA. Your landlord is obligated to issue you one if you ask them.
Your best bet is to contact an accountant. Show them your reassessment and give them authorization to deal with CRA on your behalf. They will be able to speak the same language as CRA and find out why you have been reassessed.
I’m considering buying a used vehicle for my business. Is it better to purchase through a loan or lease it?
That really depends on the cost of the vehicle and your personal preference. I always tell clients to do what they prefer in this scenario and don’t let the tax man make the decision for you, as the tax difference is negligible in most cases.
A self employed person is able to claim a percentage of their house expenses for hydro, water, insurance, mortgage interest and other household expenses based on their usage of said home for an “office in home”.
The first piece of advice I give to new small businesses is to make sure you stay onside with all government remittances by that I mean keep up to date on all payroll remittances, gst, rst and corporate taxes.
Bookkeeping is the entry of day to day revenue and expenses while accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information.
For a small business bookkeeping is the process of tracking where funds (incoming and outgoing) are coming from and where they are going. Accounting, is interpreting all of your financial information, to help you make better decisions for taxes, strategic planning and more.