Using percentage of cost as expense?

[Tony Lill]

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On 02/17/2015 09:43 AM, Michael Hendry wrote:
> 
>> On 17 Feb 2015, at 13:02, W Pawlowski <pawlowski.w at gmail.com>
>> wrote:
>> 
>> Because the car is used for business 90% off the time I am
>> allowed to use 90% of automotive expenses as deduction. In the
>> past my accountant used to calculate that percentage at the end
>> of the year for income tax calculation but now I also have to
>> remit HST on quarterly basis so I thought it would be easier to
>> do this on the fly. All my automotive expenses would be treated
>> this way: gas, repairs, etc.
>> 
>> 
> 
> I don’t know about HST - is it something like Value Added Tax in
> Europe?
> 


If you are filing as a sole-proprietor, according to the CRA website,
you should calculate the HST you can claim on such expenses at the end
of the
calendar year when you know the actual percentage of personal/business
use, and claim it on your Q4 filing. Don't know it that also applies
if you are incorporated. You could also elect to file annually. The
threshold for that is now quite a bit higher than when GST was first
introduced, and it would make things simpler.
- -- 
Tony Lill, OCT,                       ajlill at AJLC.Waterloo.ON.CA
President, A. J. Lill Consultants                 (519) 650 0660
539 Grand Valley Dr., Cambridge, Ont. N3H 2S2     (519) 241 2461
- --------------- http://www.ajlc.waterloo.on.ca/ ----------------


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