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Hi
Searching for a little help. I have a client and here is some data for him:
On commission
keeps a log book of all automobile kilometers driven.
Employer reimburses him for his kilometers and amount not included in box 14.
My question is:
My client has recorded around 80,000 kilometers for his work, but his employer will only pay him 40,800 (.25 per kilometers).
Can my client enter the other 39,200 @.25 as a deduction on from 777 since his employer didnt' pay him the amount and he actually did the kilometers for the business. Any help would be really appreciated.
Thanks
PS (no i don't know why his employer didn't pay him the rest :blink:
Julia
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Refundable allowance Refundable allowance
MultiQuote
#2
James1 
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Posted 29 April 2007 - 03:22 PM
Julia, on Apr 29 2007, 09:08 AM, said:
Hi
Searching for a little help. I have a client and here is some data for him:
On commission
keeps a log book of all automobile kilometers driven.
Employer reimburses him for his kilometers and amount not included in box 14.
My question is:
My client has recorded around 80,000 kilometers for his work, but his employer will only pay him 40,800 (.25 per kilometers).
Can my client enter the other 39,200 @.25 as a deduction on from 777 since his employer didnt' pay him the amount and he actually did the kilometers for the business. Any help would be really appreciated.
Thanks
PS (no i don't know why his employer didn't pay him the rest :blink:
Julia
Searching for a little help. I have a client and here is some data for him:
On commission
keeps a log book of all automobile kilometers driven.
Employer reimburses him for his kilometers and amount not included in box 14.
My question is:
My client has recorded around 80,000 kilometers for his work, but his employer will only pay him 40,800 (.25 per kilometers).
Can my client enter the other 39,200 @.25 as a deduction on from 777 since his employer didnt' pay him the amount and he actually did the kilometers for the business. Any help would be really appreciated.
Thanks
PS (no i don't know why his employer didn't pay him the rest :blink:
Julia
Not sure if this is what you are looking for (no mention os T2200); however, line 15 on the T777 may answer your question. you may want to read the T4044
james
#3
Julia
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Posted 29 April 2007 - 03:34 PM
James1, on Apr 29 2007, 03:22 PM, said:
Not sure if this is what you are looking for (no mention os T2200); however, line 15 on the T777 may answer your question. you may want to read the T4044
james
james
Yes form T2200 has been filled out and I have read T4044 twice, maybe 3 times lol. I just can't seem to find were i can put the remaining kilometers on form 777 that he wasn't reimbursed. That is why I am asking all you intelligent people if you had a case like that in the past. Wow I am doing some major sucking up. hahaha :rolleyes:
Julia
#4
James1
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Posted 29 April 2007 - 03:39 PM
Julia, on Apr 29 2007, 09:34 AM, said:
Yes form T2200 has been filled out and I have read T4044 twice, maybe 3 times lol. I just can't seem to find were i can put the remaining kilometers on form 777 that he wasn't reimbursed. That is why I am asking all you intelligent people if you had a case like that in the past. Wow I am doing some major sucking up. hahaha :rolleyes:
Julia
Julia
How about you complete the T777and then deduct the reimbursement from the employer on line 15 and assuming the total automotive expenses exceed the reimbursement then you would have an additional automotive expenses to cliam.
James
#5
RL Tax Joe
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Posted 29 April 2007 - 03:46 PM
Julia, on Apr 29 2007, 10:34 AM, said:
Yes form T2200 has been filled out and I have read T4044 twice, maybe 3 times lol. I just can't seem to find were i can put the remaining kilometers on form 777 that he wasn't reimbursed. That is why I am asking all you intelligent people if you had a case like that in the past. Wow I am doing some major sucking up. hahaha :rolleyes:
Julia
Julia
Perhaps you should read that guide again. Just a hint. You CANNOT do what you are thnking you can do.
#6
Julia
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Posted 29 April 2007 - 03:54 PM
RL Tax Joe, on Apr 29 2007, 03:46 PM, said:
Perhaps you should read that guide again. Just a hint. You CANNOT do what you are thnking you can do.
Well this is what I was thinking. He got paid 40800Kilometers@.25=$10,200 and he should of gotten 80,000 @.25=$20,000. Therefore I can deduct (20,000-10,200) $9,800. on line 229. Am I wrong to think that.
Julia
#8 Guest_snowplowguy_*
Posted 29 April 2007 - 04:23 PM
Julia, on Apr 29 2007, 11:54 AM, said:
Therefore I can deduct (20,000-10,200) $9,800. on line 229. Am I wrong to think that.
Yes...... you are wrong to think that.
If your client wants to deduct ANY automotive expenses he will need to to provide you with the actual expenses he incurred during the year (fuel, licence, insurance, repairs & maint, vehicle details for CCA/lease/interest expense etc).
If his actual vehicle expenses during the year (adjusted for personal use) come to more than 10,200 he may have a claim.
#9
James1
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Posted 29 April 2007 - 04:23 PM
Julia, on Apr 29 2007, 09:54 AM, said:
Well this is what I was thinking. He got paid 40800Kilometers@.25=$10,200 and he should of gotten 80,000 @.25=$20,000. Therefore I can deduct (20,000-10,200) $9,800. on line 229. Am I wrong to think that.
Julia
Julia
Sorry, see my previous post
James
#11
Joe
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Posted 29 April 2007 - 04:32 PM
snowplowguy, on Apr 29 2007, 09:28 AM, said:
Nobody listens to you James....... :P
James will probably have to post it again...
I'm still cracking up over the difference between how hard the taxpayer thinks he is working
and how hard the employer thinks he is working.... :lol: :lol:
"You were WORKING that weekend you drove a to Las Vegas? - No sonnny, Im a notta gonna pay that a for a you a - Getta that offa youra taxa returna.."
.
#12
BalancedBooks
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Posted 29 April 2007 - 04:44 PM
Julia, on Apr 29 2007, 11:54 AM, said:
Well this is what I was thinking. He got paid 40800Kilometers@.25=$10,200 and he should of gotten 80,000 @.25=$20,000. Therefore I can deduct (20,000-10,200) $9,800. on line 229. Am I wrong to think that.
Julia
Julia
OMG, OMG, OMG
Please tell me you do not charge people real money to do their income tax returns!!
Dan
Sorry people, I just couldn't overlook this one.
#13
RL Tax Joe
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Posted 29 April 2007 - 04:45 PM
Julia, on Apr 29 2007, 10:54 AM, said:
Well this is what I was thinking. He got paid 40800Kilometers@.25=$10,200 and he should of gotten 80,000 @.25=$20,000. Therefore I can deduct (20,000-10,200) $9,800. on line 229. Am I wrong to think that.
Julia
Julia
Like the little kid on the Florida commercial says...YOU CAN DO WHATEVER YOU WANT THERE!
But without the proper knowledge you are going to get yourself and your client in a tub of very steamy water.
#14 Guest_snowplowguy_*
Posted 29 April 2007 - 05:02 PM
If the employee was on the ball he would have negotiated for 50cents/km but only charged the employer for 20,400kms. The employer would be in the same position (20,400 x .50 = 10,200) ....... but the commissioned employee would be able to claim $29,800 for automotive on his T1..... ((80,000 - 20,400) x .50).
I'm not trying to be facetious but trying to demonstrate the logic of why you can't just make up arbitrary expense claims.
I'm not trying to be facetious but trying to demonstrate the logic of why you can't just make up arbitrary expense claims.
#16 Guest_snowplowguy_*
Posted 29 April 2007 - 05:21 PM
Julia, on Apr 29 2007, 01:13 PM, said:
Thank you all for your help
Julia..... in a nutshell it is like this;
Your client has received a non-taxable allowance of $10,200 for using his own vehicle in the performance of his employment duties. If he believes the actual expenses he incurred are greater than this amount then he is free to add the 10,200 to his income and deduct the actual costs he incurred (obviously substantiated by documentation & receipts) ..... rather than some arbitrary per/km amount.
#17
ChrisG
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Posted 29 April 2007 - 06:35 PM
BalancedBooks, on Apr 29 2007, 10:44 AM, said:
OMG, OMG, OMG
Please tell me you do not charge people real money to do their income tax returns!!
Dan
Sorry people, I just couldn't overlook this one.
Please tell me you do not charge people real money to do their income tax returns!!
Dan
Sorry people, I just couldn't overlook this one.
If there are paid tax preparers who think that the CRA will pay for their client's mileage, I can just imagine what the DIY folks do and then Netfile the return!
#18
RL Tax Joe
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Posted 29 April 2007 - 07:02 PM
ChrisG, on Apr 29 2007, 01:35 PM, said:
If there are paid tax preparers who think that the CRA will pay for their client's mileage, I can just imagine what the DIY folks do and then Netfile the return!
I have found that when I get new clients that have been DIY's that there generally is more deductions taken incorrectly than deductions missed in error.
This costs the government huge in tax dollars, audit costs, etc. etc. So the NDP talk about giving everyone tax software to do their own taxes is about as swift as...Well, I'll leave it at that.
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