Personal Finance

GST ITC technical question

  • Last Updated:
  • Jan 28th, 2019 2:29 pm
[OP]
Newbie
Jul 15, 2011
14 posts
5 upvotes
BURNABY

GST ITC technical question

***Edit*** Business is a sole prop.

Hi,

I've searched everywhere on the CRA website in regards to claiming the ITC for a vehicle lease but can't find guidance on my friend's situation. Also called the GST line and was on hold forever.

The situation is he leased a sprinter van on December 1 2018 for business and his monthly lease payment exceeds the $800 maximum.

In this case, how much does he claim the ITC of the GST portion of his payment?

Does he claim $800*5%*% of mileage for business per month?
E.g. If his business use % was 75% in December, does he claim $800*5%*75% = $30?

And since he's claiming the ITC, he would only be able to write off $800*1.07 on his income taxes?

Thank you.
Last edited by ironic on Jan 22nd, 2019 11:01 am, edited 1 time in total.
3 replies
Newbie
Oct 5, 2016
54 posts
16 upvotes
What type of business is it? A corporation, partnership or a sole prop?
[OP]
Newbie
Jul 15, 2011
14 posts
5 upvotes
BURNABY
Sorry, should've mentioned; it is a sole prop.

Thanks.
Deal Fanatic
Aug 21, 2007
5206 posts
316 upvotes
Markham
ironic wrote: ***Edit*** Business is a sole prop.

Hi,

I've searched everywhere on the CRA website in regards to claiming the ITC for a vehicle lease but can't find guidance on my friend's situation. Also called the GST line and was on hold forever.

The situation is he leased a sprinter van on December 1 2018 for business and his monthly lease payment exceeds the $800 maximum.

In this case, how much does he claim the ITC of the GST portion of his payment?

Does he claim $800*5%*% of mileage for business per month?
E.g. If his business use % was 75% in December, does he claim $800*5%*75% = $30?

And since he's claiming the ITC, he would only be able to write off $800*1.07 on his income taxes?

Thank you.
https://www.canada.ca/en/revenue-agency ... ntage.html

here the link you need. Check the passenger vehicle section

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