Can family physician deduct his/her car expenses ? through his/her professional corporation.
Thanks
Car Expenses
To the extent that the car his used to carry-out your professional and business duties, the costs can be deducted. There are two ways you can handle this:
1) Have your corporation pay for the vehicle expenses and include the amount paid as a taxable benefit to you on a T4 slip. You can then deduct the employment-use-portion of the car expenses on your personal tax return (form T777), OR
2) Have your corporation pay a tax-free vehicle allowance to you at a rate of 55 cents for the first 5,000 kilometers and 49 cents for each kilometer thereafter. Note: You cannot receive a tax-free allowance (per KM) and also receive reimbursement of your out-of-pocket costs from your corporation for your vehicle.
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