Personal Finance

Tax time! I'm a public accountant, so ask me, I'll try to respond frequently

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  • May 13th, 2018 12:33 pm
Sr. Member
Jan 20, 2007
758 posts
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Question: I earned 2500$ from renting my car on Turo this year. It's a 2007.

I'd say it was on the road for 90 days, accounting for about 12 000 km of the 20 000 km that my car was used for this year.

I'd like to know how I can deduct expenses. What can I claim? 60% of total expenses based on km or 25% based on days out?

Figuring out my total cost for repair bill, insurance and licensing is easy, but claim Idepreciation as well? If so, how can I do calculate it?
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Dec 14, 2007
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morglum82 wrote:
Feb 6th, 2018 3:50 pm
Question: I earned 2500$ from renting my car on Turo this year. It's a 2007.

I'd say it was on the road for 90 days, accounting for about 12 000 km of the 20 000 km that my car was used for this year.

I'd like to know how I can deduct expenses. What can I claim? 60% of total expenses based on km or 25% based on days out?

Figuring out my total cost for repair bill, insurance and licensing is easy, but claim Idepreciation as well? If so, how can I do calculate it?
Depreciation is a set amount per year. 30% for vehicles. This will help: https://www.thebalance.com/capital-cost ... ce-2947323

So you work out the purchase price, and reduce it each year by that much.

If you bought the car two years ago for 20,000
The 1st year = 6,000 CCA ( 30% x 20k ) === Car now valued at 14,000 )
The 2nd year = 4,200 CCA ( 30% x 14k ) === Car now valued at 9,800 )
The 3rd year = 2,940 CCA ( 30% of 9,800 ) === Car now valued at 6,860 )
...and so on.

If you used the car 40% of the time for business, you can write off 40% of the CCA. (e.g 2,400 the first year ).

In your case, you need to know the price of the car when you bought it and how long you've owned it. Here's a quick calculation for you to know the cost of the asset today:

v = p x (0.7^y)
v = current value
p = original price
y = Years you've owned the car ( if you bought it in October-2015, that would be 2 years... for its value as of the 2017 tax year )
I'd love to write history... in advance.
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Nov 19, 2004
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Cambridge, ON
morglum82 wrote:
Feb 6th, 2018 3:50 pm
Question: I earned 2500$ from renting my car on Turo this year. It's a 2007.

I'd say it was on the road for 90 days, accounting for about 12 000 km of the 20 000 km that my car was used for this year.

I'd like to know how I can deduct expenses. What can I claim? 60% of total expenses based on km or 25% based on days out?

Figuring out my total cost for repair bill, insurance and licensing is easy, but claim Idepreciation as well? If so, how can I do calculate it?
For the other expenses, it is a percentage of business use kms divided by total km for the year. So don't worry about the 90 days.

As an aside though, for 12000km that doesn't sound worthwhile. That 2500 would probably be zero by the time you pay for insurance alone. Or is that 2500 profit after all expenses? If so, make sure you claim your actual gross on your taxes. Then put your deductions in.
Sr. Member
Jan 20, 2007
758 posts
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atomiton wrote:
Feb 6th, 2018 5:15 pm

Depreciation is a set amount per year. 30% for vehicles. This will help: https://www.thebalance.com/capital-cost ... ce-2947323
don242 wrote:
Feb 6th, 2018 7:10 pm
For the other expenses, it is a percentage of business use kms divided by total km for the year. So don't worry about the 90 days.
Thanks! this is exactly what I needed.
don242 wrote:
Feb 6th, 2018 7:10 pm
As an aside though, for 12000km that doesn't sound worthwhile. That 2500 would probably be zero by the time you pay for insurance alone. Or is that 2500 profit after all expenses? If so, make sure you claim your actual gross on your taxes. Then put your deductions in.
Hi Don,
I tend to agree with you that it wasnt really worth the effort.

I probably overstated the km, as I assumed that everyone who rented for me used most their km/day rental. The actual figure is probably closer to 8 or 10 000km.

That being said, my cost of ownership for the full year was probably lower than you expect. I'm in Quebec and only insure for 1M liability for ~ 250$ per year. Licensing is another 250$. Repairs for the year, 1500$. Depreciation of my 4000$ car.. maybe 1000 $ ? Total cost of ownership: 3000$. Some repairs were age-related (rusted out part) rather than mileage-related, too.

Substracting the 2500$ the car owned during the Summer, I paid 500$ to own my car over the year. This is great because I only use this car during the Summer.
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Jan 19, 2018
31 posts
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I have a question around pension buy back and how to claim it on taxes.

I can see the pension buy back amount is mentioned on the T4 in box 52.

So while filing taxes do I

1. just enter the T4 information
OR
2. enter this buy back amount in past year RRSP section.

I don't want to double claim the amount but at the same time want to ensure I don't miss claiming it.

Do you know how to claim the pension buy back
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Nov 19, 2004
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morglum82 wrote:
Feb 6th, 2018 10:18 pm
Thanks! this is exactly what I needed.


Hi Don,
I tend to agree with you that it wasnt really worth the effort.

I probably overstated the km, as I assumed that everyone who rented for me used most their km/day rental. The actual figure is probably closer to 8 or 10 000km.

That being said, my cost of ownership for the full year was probably lower than you expect. I'm in Quebec and only insure for 1M liability for ~ 250$ per year. Licensing is another 250$. Repairs for the year, 1500$. Depreciation of my 4000$ car.. maybe 1000 $ ? Total cost of ownership: 3000$. Some repairs were age-related (rusted out part) rather than mileage-related, too.

Substracting the 2500$ the car owned during the Summer, I paid 500$ to own my car over the year. This is great because I only use this car during the Summer.
OK. Make sure you have a good log book for tracking the kms. If the CRA asks, they will want to see that.

I know insurance varies a lot by province, but I am surprised that it is only $250 more to insure for that kind of business use. I guess it relies on the renters insurance so maybe it makes sense.
Sr. Member
Jan 20, 2007
758 posts
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don242 wrote:
Feb 7th, 2018 8:14 am
OK. Make sure you have a good log book for tracking the kms. If the CRA asks, they will want to see that.

I know insurance varies a lot by province, but I am surprised that it is only $250 more to insure for that kind of business use. I guess it relies on the renters insurance so maybe it makes sense.
The total yearly cost for insuring my car for personal use is 250$. There is no additionnal cost to insure it as a rental on Turo: it is turo's company insurance that provides coverage during those days (at the renters expense). You just have to "tell your insurer you rent on Turo", I know Intact allows it, maybe others.
Member
Feb 2, 2007
427 posts
187 upvotes
GTA
darrenm01 wrote:
Jan 11th, 2018 7:39 pm
Hello,

I made an RRSP contribution in January 2017 for my maximum for the year. Then in July 2017 I signed up for a company RPP which had about $3000 in total contributions by the end of 2017.

Problem is this put me over my RRSP limit for 2017. I believe there is a lifetime $2000 amount you can over contribute and not claim, but not be penalized for, either.

This still leaves around $1000 - what’s the best way to deal with this (given nothing has been filed yet)?

Thanks!
Darren
I don't think you've overcontributed at all.

RRSP contribution room is based on last year's earned income.
RPP contribution room is based on current year's earned income.

The $3,000 RPP contributions made in 2017 would result in a pension adjustment reducing the RRSP room in 2018.
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Nov 20, 2016
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If you received EI in 2017 but had to repay the full amount in 2018, do include the EI income in 2017 and deduct the repayment in 2018 or adjust both on the filing of the 2017 return? As you are required to repay the EI. Thanks.
Newbie
Oct 19, 2013
23 posts
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Toronto
What's the average cost to file corporation tax for self employ.
Basically I was the only one in my company for contract work.
I do all the book keeping and send out a spread sheet to my accountant so he files corporation tax based on that.
I do GST/HST return by myself too. So my accountant just file the corporation tax.
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Nov 22, 2016
17 posts
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Had a payroll question, if I paid out a bonus to myself in January 2018 but did not deduct enough income tax based on the bonus method, what can I do? Should I just deduct more taxes throughout the year so I do not end up owing anything? Or will I be hit by the CRA for not deducting enough income tax from the bonus payment?
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Oct 21, 2009
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Have the federal and provincial (Ontario) child activity tax credits been scrapped?
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Sep 19, 2013
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Dumb(ish) question, but just checking.

I am a single income earner in MB. I do my own taxes, so just wanted to check one thing. My child attended private pre-K this year. They gave us receipt for tax purposes. But I dont think I can deduct in my tax filing. Because my wife was not working or attending school. Am I correct?
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Feb 3, 2015
30 posts
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Kirkland Lake, ON
jimmyho56 wrote:
Feb 7th, 2018 6:05 pm
If you received EI in 2017 but had to repay the full amount in 2018, do include the EI income in 2017 and deduct the repayment in 2018 or adjust both on the filing of the 2017 return? As you are required to repay the EI. Thanks.
Include the EI income on 2017 tax return; report the EI payback on the 2018 return; you will receive the EI slip stating the amount of repayment
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Feb 3, 2015
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Kirkland Lake, ON
amitdi wrote:
Feb 9th, 2018 1:48 pm
Dumb(ish) question, but just checking.

I am a single income earner in MB. I do my own taxes, so just wanted to check one thing. My child attended private pre-K this year. They gave us receipt for tax purposes. But I dont think I can deduct in my tax filing. Because my wife was not working or attending school. Am I correct?
Correct

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