My turn to rant, taxable benefit issue

[Rod Caster]

How can I claim the gas/reimbursement as a tax deduction?, I have paid and been reimbursed now your saying claim the gas a second time?

Can`t CRA being okay with that!

 

He's right. I have a gas card that is a taxable benefit. Every penny that was charged on my gas card was claimed as a tax deduction.

Think of it this way:

They consider the gas money as salary, but they force you to use it for business... Hence, business write off.

Now go enjoy your extra 1500-2500 tax return.

[John Bacon]

How can I claim the gas/reimbursement as a tax deduction?, I have paid and been reimbursed now your saying claim the gas a second time?

Can`t CRA being okay with that!

 

Yes, I would expect them to be okay with that as long as the reimbursement has been included in your income. Think of it as a supplement to your allowance.

 

In all honesty I didn't research the law; but that is what makes sense to me. If I was in your situation I would deduct the gas as part of the auto expenses.

[SlowPoke]

There's something wrong with this situation and you only have to remove the terminology to figure it out.

You pump your gas into your car.

You reach into your pocket and pull out $50 of AFTER TAX cash to pay for it.

You submit the receipt for your expense and you are TAXED again.

Not cool.

I would suggest your company is not reimbursing you properly but I'm not an accountant. That's why I pay one and he earns every penny and then some. A little off topic but I would suggest anyone that files anything remotely different from a basic tax return is short changing themselves by not using an accountant.

Edited April 15, 2012 by SlowPoke

[cram]

You're not really getting screwed. If you use the car 90% business and 10% personal, then apply that 90% against the gas spend and that's a deduction.

 

You're taxable benefit is the money they pay you for personal gas use.

 

Unless I'm missing something.