Quote:
Originally Posted by 81MC
I’d document every single time you drive it. If you ever get caught up in an audit, the CRA is ruthless with personal use.
My dad had a full on cargo van for work. Panel van, no carpet, no rear seats, ladder rack etc. For 6 years between him and his accountant they wrote off what they thought was acceptable expenses for a vehicle very clearly a work vehicle.
A few years of disputed auditing, the CRA determined he didn’t document his use well enough, accused him of using the van to perform personal duties like going to grocery store and driving his children around (yes, in a two seated cargo van) and my dad ultimately was hit with $26k in tax owing. He exhausted all his options and couldn’t afford a lawyer to fight the case, including clear indications of either CRA ‘incompetence’ (like sending required notifications to the prior addresses AFTER having correspondence with his current address on file). Ultimately it cost him his business, access to credit and future earnings.
And this wasn’t some guy driving a flash sports car paid through a company. He was self employed and used this van every day for legitimate work. I’m sure his accountant was under qualified, but the details continue to dumbfound me.
I don’t trust those ####ers, at all. And I would be very, very careful when considering personal use of a business expense.
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JFC are you joking around with me? That's nucking futs. Yeah, I'll get way more clarification on this from my accountant as there is no way in hell I want to deal with any of that to save a few dollars. Thanks.