Car lease expense on property rental
I wonder how many rental property you need in order to claim for car lease expense?
May 1st, 2019 3:44 am
May 1st, 2019 5:54 am
May 1st, 2019 8:40 am
I know you said its not determined by how many properties you own, but some types of trips ARE determined by the # of properties. If you own 1 property you cannot claim the mileage for collecting rent, however if you own two properties or more you can.canuckstorm wrote: ↑ It does not work that way. In order to claim vehicle expenses as a business owner you have to prove that you are using the vehicle for business. It is not determined by how many rental properties you own. For example if you have to go to RONA to pick up a new vanity for your rental property, just that use of your vehicle can be expensed as it is directly related to the business.
May 1st, 2019 8:50 am
May 1st, 2019 9:19 am
May 1st, 2019 10:09 am
May 1st, 2019 10:45 am
The $0.55/km also is intended to take into account depreciation on the car for the extra mileage, maintenance, etc. So you could likely have claimed more than peanuts.rfdrfd wrote: ↑ Learned something new today. $0.55
I've been claiming the gas cost using km travelled and the gas price on that day, with my cars avg consumption rate. Figured that's truly accurate so CRA should be happy if I'm audited one day.
Like the other poster said, it still ended up as peanuts!! Haha useless.
May 1st, 2019 9:13 pm
Pardon me, I am not a CPA but just a business man who also claims mileage and deal regularly with CPA's when doing my business taxes.
May 1st, 2019 9:21 pm
https://www.canada.ca/en/revenue-agency ... enses.htmlcanuckstorm wrote: ↑ Pardon me, I am not a CPA but just a business man who also claims mileage and deal regularly with CPA's when doing my business taxes.
I am failing to understand what you mean. Are you saying that the CRA makes a distinction on claiming vehicle expenses for people in the rental property business by virtue of whether they own a single or multiple properties?...
May 1st, 2019 9:26 pm
May 1st, 2019 9:32 pm
Thanks for the clarification. Learn a new thing everyday.l69norm wrote: ↑ https://www.canada.ca/en/revenue-agency ... enses.html
You can deduct motor vehicle expenses in the following circumstances:
If you own one rental property – You can deduct reasonable motor vehicle expenses if you meet all the following conditions:
- you receive income from only one rental property that is in the general area where you live
- you personally do part, or all, of the necessary repairs and maintenance on the property
- you have motor vehicle expenses to transport tools and materials to the rental property
You cannot deduct motor vehicle expenses you incur to collect rents. These are personal expenses.
If you own two or more rental properties – In addition to the expenses listed above, you can deduct reasonable motor vehicle expenses you incur to do any of the following:
- collect rents
- supervise repairs
- manage the properties
This applies whether your rental properties are located in or outside the general area where you live. Your rental properties have to be located in at least two different sites, away from your principal residence.
May 2nd, 2019 9:32 am
OP never mentioned that he is a business owner, he is simply asking about auto expenses on for his rental property. Unless he provides more info, quiet likely scenario is that his rental properties are owned by him personally.canuckstorm wrote: ↑ It does not work that way. In order to claim vehicle expenses as a business owner you have to prove that you are using the vehicle for business. It is not determined by how many rental properties you own. For example if you have to go to RONA to pick up a new vanity for your rental property, just that use of your vehicle can be expensed as it is directly related to the business.
Also the accounting could be quite a nightmare once you try to claim lease payments as you will have to add personal mileage to your personal income as a taxable benefit e.t.c
May 2nd, 2019 10:31 am
By the way, I am a CPA, and a property owner.canuckstorm wrote: ↑ Pardon me, I am not a CPA but just a business man who also claims mileage and deal regularly with CPA's when doing my business taxes.
I am failing to understand what you mean. Are you saying that the CRA makes a distinction on claiming vehicle expenses for people in the rental property business by virtue of whether they own a single or multiple properties? Doesnt make sense to me. So, in other words someone who owns a 10 unit apartment building (considered a single property) can not claim the mileage for collecting rent, yet someone who owns two separate detached houses can?
I always thought that as long as you are generating taxable business income, you can claim all legitimate and reasonable expenses. Whether claiming those expenses is worth it is a whole different discussion. I stand corrected if there are any tax bulletins or case law making a distinction between single and multiple property owners.