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
Disclaimer that you're apparently asking about Canadian taxation, which I know absolutely nothing about.
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.
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.
1) Supplies 2) Office Expenses
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 :)
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
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
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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