Blog Archives - BMP ACCOUNTING & TAX INC.

Making Your Home Work for You

3/12/2022

Did you know that the work-from-home tax credit is back in 2021? If you have worked more than 50% of the time from home for a period of at least four consecutive weeks in 2021 you are eligible to use your home office expenses as deductions to your income in 2021. CRA allows you to claim this credit through a simplified method using a $2 per day temporary flat rate, however, they increased the 2021 maximum to $500 from $400.

If you prefer to claim the detailed method, the following list outlines what you can claim:
-electricity
-home internet access fees
-maintenance and minor repair costs
-rent paid for a house or apartment where you live

In addition to these expenses, commissioned employees can claim:
-home insurance
-property taxes
-lease of a cell phone, computer, laptop, tablet, fax machine, etc. that reasonably relate to earning commission income

What cannot be claimed:
-mortgage interest
-principal mortgage payments
-home internet connection fees
-furniture capital expenses (replacing windows, flooring, furnace, etc)
-wall decorations

Have more questions? Do not hesitate to contact us!

Driving Down Taxes

3/4/2022

Do you use your vehicle for work? Did you know you can use a percentage of your car expenses in your tax return?

Here are some of examples of important information when using car expenses as deductions:

1. Keep a mileage log: A detailed logbook is the best defense to support any vehicle expense used as a tax credit. For each business trip, you will need the following information:
-date
-destination
-purpose
-the reading of your odometer before and after your trip

If you do not wish to keep a paper log, there are many apps on the market to help the task of keeping an accurate log. Please also remember to jot down the odometer reading on your vehicle at the start and end of the fiscal year.

2. If you are using the detailed method, keep all your vehicle receipts. Yes. Even that gas receipt when you tanked up right before leaving for your road trip to Vancouver. The calculations for the allowable expense use your TOTAL vehicle expenses. You are short changing yourself if you keep only gas receipts from the times you filled up right before a client meeting.

3. If you are an employee, get a T2200 (Conditions of Employment) signed by your employer.

Have more questions? Do not hesitate to contact us!