If you use your automobile for employment purposes in 2001, you can receive a tax-free reimbursement from your employer at a rate of 41 cents per kilometre for the first 5,000 kilometres, and 35 cents per kilometre for each additional kilometre. These rates will vary depending upon the province or territory in which you are employed.
If the total cost to operate your vehicle exceeds the per kilometre allowance you receive, you may claim the reimbursements as income and deduct the actual expenses as employment expenses.
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