Claiming Gas and Tools on Tax Return....
 

You have to fill in a form R200 or something. Do you need to supply receipts to the tax bods or is it okay to attach a list stating gas used and cost, as well as tools purchased and cost?

Re: Claiming Gas and Tools on Tax Return....
 

For tools I'm pretty sure you need the reciepts too, Have no idea about gas though.

Hubby has been advised to get a replacement quote for his tools so we can claim them next year as we have never claimed for them.

Re: Claiming Gas and Tools on Tax Return....
 

Any expenses you claim, tool, gas etc. you need to keep receipts. Expensive tools (e.g. over $750 ) should be a capitalised.

If you are audited and cannot produce receipts the expense may be disallowed. I believe you cannot claim the journey from home to the first job either.

Re: Claiming Gas and Tools on Tax Return....
 

My OH has to go to the office first to collect bits etc etc and then on to work, so he is covered!

Re: Claiming Gas and Tools on Tax Return....
 

Any ideas where we can get a replacement quote from?

Re: Claiming Gas and Tools on Tax Return....
 

If your OH is employed, then the maximum tool deduction in any year is $500. He will need to complete a form T777 and file this with his income tax return.

Form T777 also has a place to calculate his motor vehicle expenses. He can claim a proportion of all expenses (not just gas) based on the proportion of kms he drove on business to his total kms for the year. Note that journeys from home to the office are not considered as a business journey.

Re: Claiming Gas and Tools on Tax Return....
 

Quotes are not acceptable as receipts to CRA (or in accounting for that matter). You would need duplicate receipts or copies of invoices from original purchase with corresponding dates. CRA would disallow expenses claimed on quotes.

If you don't have the original or a duplicate receipt then it won't be accepted as a legitimate claim.

For vehicle expenses, as an employee if you are reimbursed for mileage then that has to be counted as income if you are claiming the expense. For self employed, unless the vehicle is 100% business then you hold keep a mileage log of business related trips.

The thing with CRA is if you cannot prove an amount, income or expense, to their satisfaction then they go by their decisions. The onus is alway on the tax payer to prove the legitimacy of an expense.

Re: Claiming Gas and Tools on Tax Return....
 

What about VISA statements showing purchases?

Re: Claiming Gas and Tools on Tax Return....
 

They don't itemize what you've purchased, just provide the retailers name, which could mean anything. It's not good enough proof.

Re: Claiming Gas and Tools on Tax Return....
 

I agree with everyone that you need the actual receipts if CRA decide to audit your return. Nothing else will do.

However, if you genuinely have bought tools for his job I would still claim it, even if you don't have receipts. They will deny the credit if all you can produce is a credit card statement, and ask for the tax and interest back. However, they most likely will not ask.

Re: Claiming Gas and Tools on Tax Return....
 

Thank you - just the answer I was looking for lol :wub:

Re: Claiming Gas and Tools on Tax Return....
 

But, if they do it once, they'll do it again. And again.:curse:

Re: Claiming Gas and Tools on Tax Return....
 

LOL....bad experience Mr S? :rofl:

Re: Claiming Gas and Tools on Tax Return....
 

I've been audited by the CCRA twice, so far.......

Re: Claiming Gas and Tools on Tax Return....
 

I don't like the sound of that!