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Level 1
April 20, 2023
Question

Form T777AUTO for Full time employee-URGENT

  • April 20, 2023
  • 3 replies
  • 5 views

I have a client that has a full time job and they are paying him taxable income for vehicle expense of 6k and it it in box 40 on his T4, also the T2200 says they gave him the 6K.

I'm claiming the vehicle expenses such as loan, interest, insurance, etc. 

 

My questions is, can I claim the expenses even if he is getting a taxable income for as reimbursement? Should I add this amount in the T777A under " Reimbursement ( Note)"

 

 

 

 

Thank you,

This topic has been closed for replies.

3 replies

Level 7
April 20, 2023

If he is receiving a taxable vehicle allowance, he is allowed to deduct vehicle expenses.  You would not record the amount as a reimbursement as it is already included in income and that would be double counting.

 

Since the vehicle allowance is taxable , it is considered NOT to be a reasonable allowance.  If he were to receive a reasonable allowance, the allowance would not be taxable and the vehicle expenses would not be deductible.

Level 8
May 2, 2023

Community answered tax question

Level 8
May 2, 2023

Nice answer