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Level 1
April 9, 2024
Question

Employment expenses for salaried

  • April 9, 2024
  • 1 reply
  • 2 views

The taxpayer has a T2200E which indicates he receives a motor vehicle allowance of $14,000 which is included in his T4.

Can this taxpayer still deduct other vehicle expenses such as fuel, insurance, CCA, etc.?

CRA guidelines aren't quite clear.

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1 reply

Level 7
April 15, 2024

If a vehicle allowance is included in income, then it means it is an "unreasonable" amount and thus is taxable.  Since it is taxable, yes, he can deducted employment related vehicle expenses.