Help needed to understand how you write off the acquisition of a car (Class 10.1)
Let's say the car was 35K + taxes
30K + GST will me written off over time via the CCA account
What happens with the difference 5K + taxes ? How do I write that off ?
May 30th, 2018 9:25 am
May 30th, 2018 11:06 am
May 30th, 2018 2:47 pm
May 31st, 2018 6:55 am
So will it remain on the assets tab for the rest of the life of the company?
May 31st, 2018 8:18 am
May 31st, 2018 11:35 am
May 31st, 2018 12:40 pm
Jun 1st, 2018 7:13 am
Jun 1st, 2018 7:32 am
Jun 1st, 2018 1:14 pm
that is for taxes
Jun 1st, 2018 1:33 pm
Actually no. What you described is not your net income for accounting purposes. Sounds like your cash flow statement balance.
Jun 5th, 2018 8:34 am
You should consider hiring accountant.
Jun 12th, 2018 9:38 am
I would not consider hiring an accountant for this.Homerhomer wrote: ↑Jun 5th, 2018 8:34 amYou should consider hiring accountant.
Your car is set up as capital asset in your books, then depreciated over time using appropriate rate based on your total cost.
For tax there is a limit based on the cost how much can be depreciated.
Those are the differences, not matching what you spend.
For cars there is whole other set of issues to deal with (percentage of business use, who owns the car, potential taxable benefits and so on), but assuming 100% is used for business it is pretty simple as long as you understand the basics.