Assets Excluded From Probate

The following items are excluded in determining the value of the estate for purposes of probate:

    1. assets held in joint tenancy with right of survival - when one person dies, the asset is automatically owned by the surviving joint tenant(s), as long as the joint tenants have beneficial ownership, not just legal ownership. Note that if a joint tenant or legal owner (person on title) does not have beneficial ownership, this is a "bare trust". Bare trusts are required to file a T3 tax return now under new trust reporting requirements, with the first due date being April 2, 2024.

    2. assets with named beneficiaries or successor holders, such as life insurance policies, RRSPs or TFSAs. ges go a long way in looking professional online

    Source: Taxtips.ca

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What Vehicle Expenses Can be Deducted by a Business?

Income Tax Act s. 18(1)

When any vehicle is used for both business and pleasure purposes, it is important to keep a trip log to identify the business use of each vehicle.

Vehicle Expenses - Unincorporated Businesses

An unincorporated business (proprietorship or partnership) may deduct all reasonable motor vehicle expenses which are related to the business use of the vehicle (see trip log article), after applying the limitations regarding passenger vehicles.  If, for instance, 60% of your mileage is for business purposes (40% personal), you can deduct 60% of the expenses related to the vehicle.

See also the Canada Revenue Agency (CRA) interpretation bulletin IT-521R Motor vehicle expenses claimed by self-employed individuals (Archived).

Vehicle Expenses - Corporations

Corporations may deduct all reasonable motor vehicle expenses, after applying the limitations regarding passenger vehicles. 

If a shareholder or employee uses a company-owned automobile for personal purposes, a taxable benefit will be added to their income.  The rules regarding automobile taxable benefits were changed starting in 2003, making it less costly to employees and shareholders to use company-owned vehicles for personal use.

Before making the decision as to whether to purchase an automobile personally or in the company name, all the income tax implications should be reviewed.

In August 2019 CRA started an audit project related to corporate car expenses.  Make sure you keep a trip log of vehicle travel!!

What Expenses are Included as Motor Vehicle Expenses?

Motor vehicle expenses include interest on loans to purchase automobiles, capital cost allowance (CCA), automobile leasing costs, and operating expenses such as fuel, oil, maintenance and repairs, license and insurance costs, and car washes.

Parking costs are not included as motor vehicle expenses.  When the parking is related to business use of the motor vehicle it is 100% deductible, and when it is related to personal use it is not deductible.

If you have any questions regarding vehicle expenses or questions regarding other financial matters please call us or book an appointment and we help make It Figure for you.

Source: Taxtips.ca