• Last Updated:
  • Jan 31st, 2019 9:43 pm
[OP]
Newbie
Jan 29, 2019
1 posts

Auto reimbursement

Hello,

I recently started a small business and I would like to reimburse myself for my personal truck finance payments as that is the vehicle I use for work.
I am aware that I am able to reimburse others for this however am not sure if it would work as the owner of the company.

If my truck payment is $245 bi weekly for example, and I write myself a cheque for $245 every 2 weeks, do I have to claim that as in income or no because its a reimbursement?

Thank you
1 reply
Deal Addict
User avatar
Feb 14, 2009
1280 posts
512 upvotes
ChrisW89236 wrote:
Jan 30th, 2019 7:51 pm
Hello,

I recently started a small business and I would like to reimburse myself for my personal truck finance payments as that is the vehicle I use for work.
I am aware that I am able to reimburse others for this however am not sure if it would work as the owner of the company.

If my truck payment is $245 bi weekly for example, and I write myself a cheque for $245 every 2 weeks, do I have to claim that as in income or no because its a reimbursement?

Thank you
Read here:
https://www.canada.ca/en/revenue-agency ... ances.html
The easiest way is to calculate how many km you use personal car for business purposes --
it must be documented by log-book. Then you (owner-emploee) submit some kind of "expense report"
for a total of BUSINESS_KM*0.51$ -- let say 2000 KM * 0.51 = 1020$
Company then writes a check for 1020 to you. Then
Company report 1020 as business expenses. Company report it in T4 as NON_TAXABLE benefit.
You report 1020 as NON_TAXABLE benefit in personal taxes.

There is another way to calculate expenses: by adding real lease amount + gaz + maintenance + parking (?).
Then business expenses are calculated as total_expenses * business_kM / total_KM.
(but I am not sure that this method is applicable for your case)

Cheers!

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