"Learn" <angie_scrub[at]yahoo.ca> wrote:

- quote -

If I'm correct a T2 is a Canadian Tax form. I do not think
you will find much help here. Primarily, USA here. I'm
familiar being a CPA in the Detroit area but not familiar
enough to venture an answer.

Sorry

Mark Rigotti, CPA

Moderator:
Hopefully a Canadian tax professional will chime in on
this one. Note: The only geographic-restriction in this
newsgroup is my language limitation of only being able to
read English as in Southern American English, damnyankee
english, The Queen's English, etc.

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Learn wrote:

- quote -

If this a United State of America federal tax question (and
I wonder, given your use of kilometers), don't worry about
it. Just record your business mileage (since that is
required anyway) and use the standard mileage rate of 48.5
cents per mile for business purposes on the appropriate
form.

Now then; where ARE you?

ChEAr$,
Harlan Lunsford, EA n LA

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"Learn" <angie_sc...[at]yahoo.ca> wrote:

- quote -

For busines use of car, you have two choices as far as taxes
are concerned: actual expenses or standard mileage rate.
Both require you to keep track of how many miles you use for
business purposes and how many for personal or other use.

Standard mileage is simpler, in that you add up the total
business miles driven, multiply times the standard rate, and
that is your deduction. The rate changes every year and
sometimes more often.

For actual expenses, you keep track of everything you spent
on the car, including gas, oil, repairs and service, car
washes, insurance, garage rental. Then you calculate what
percent of your use of the car was business related
(business miles/total miles) and multiply total expenses
times business percent use.

I can't help you with QB entries.

Dennis

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Learn wrote:

Disclaimer that you're apparently asking about Canadian
taxation, which I know absolutely nothing about.

- quote -

This is not the right method under US tax law. I have no
opinion on whether it's the right method under Canadian tax
law.

- quote -

The second is the one I'd choose. Huge caveat - under US
tax law, assigning fuel expenses to that tax item in
Quickbooks would likely not result in an accurate tax return
if you simply imported Quickbooks into TurboTax. You should
ask a local CA who works with Quickbooks the best way to set
this up.

- quote -

1) Supplies
2) Office Expenses

- quote -

For US tax purposes, calculate the percentage of personal
vs. business based on minutes, and use that formula for that
month. Repeat for the remaining months. The line you've
proposed is appropriate. However, assuming that you're
keeping track of both the deductible and non-deductible
portions, you need a second account to book the
non-deductible (personal) portion to. The CA who tells you
how to book the fuel expense can advise you about this, too.

Phoebe

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I need help inputting my gas expenses into quickbooks. I am
having a hard time wrapping my head around it. The
following is my scenario:

I use a car for both personal and business use. (Not owned
by me). Should I calculate the number of kilometers to a
clients destination and then compute how much gas was used?

How should I be accounting fort he expenses?? Under which tax Line:

T2124 Business: Other Auto Expenses
T2124 Business: Auto Fuel and Oil

Thank you

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