Own Your Vehicle Personally if You Drive About 8,000 km or More Per Year
CRA Vehicle Allowance Rate
2020 5,000 km $0.59 and then $0.53
2019 5,000 km $0.58 and then $0.52
2018 5,000 km $0.55 and then $0.49
2017 5,000 km $0.54 and then $0.48
2016 5,000 km $0.54 and then $0.48
Company Owned or Leased Vehicle if You Drive About 8,000 km or More Per Year as Long as Over 50% is Driven for Business
Maximum Capital Cost Allowance (CCA) aka depreciation is on $30,000 regardless of purchase price
Depreciation Year One 15%
Depreciation thereafter 30%
$800/month = $9,600/Year
Meals and Entertainment
Sales Luncheons & shareholders meetings
Claim 100% so that you calculate the sales tax, but because you ate too, the CRA wants the accountant to back out 50%. Your company still pays the whole amount and there is no taxable benefit to you.
Approximately 30% of the time you can buy a gift certificate and claim it as Advertising and promotion so that you can write it off at 100%, instead of oonly 50%.
Business Luncheon that actually garners business:
Attach business card & purchase order to receipt and claim 100% by claiming it as Advrtising and Promotion.
Golf: Pay green fees not annual membership
NHL Hockey or CFL Football: Buy tickets to individual games not season tickets
Customer appreciation parties
Do you have any receipts for large restaurant parties or Costco receipts declared as home barbeque parties? Put them under Advertising and Promotion to a total of 6 customer appreciation parties, plus 1 customer appreciation Christmas party.
Business Use of Home Office
Must be your only office and used regularly
Your office “space” divided by your total home space…
Example: 200 sq ft / 2,000 sq ft = 10%
Take maximum of 20%
Example Deductions include:
1. 20% of Rent or mortgage interest
2. 20% of Property insurance
3. 20% of Property tax
4. 20% of Operating costs: Heat, light, water, etc.
5. 20% of Cleaning supplies
6. 20% of Maintenance & repairs semi-related to space
a. 20% Furnace, air conditioning and roof repairs
7. 100% of Maintenance & repairs to actual space
a. 100% of Painting the room
b. 100% of Repairs due to equipment installations
We have a $200 Health Spending Account that allows you to write off all medical expense at 100%.
You can go on 1 Annual General Meeting per year with your shareholders anywhere in the world. Therefore, make your spouse and children non-voting shareholders, each with a different class of share.
You can also attend 2 industry-related conventions anywhere in the world.
Children as Employees
AB: 12 years old
BC: 12 years old
SK: 14 years old
MB: 13 years old
ON: 14 years old
QC: 14 years old
Eastern Canada: Any age with any work that is not harmful to the child