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posted Oct 31, 2019 4:02:20 AM

I pay my own vehicle expenses and work straight commission but am not away 12 hours at a time. can I use T2200?

I am paid straight commission and I usually work in the company showroom.  I am expected to use my own vehicle to go to customer homes and measure.  I then put the quote together at home in my home office.  I do not have to be away 12 hours at a time.  Can I still use the T2200 to claim my expenses?

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1 Best answer
Level 15
Oct 31, 2019 4:02:22 AM

If you meet the following employment commissions and your employer completes and signs the T2200, you can claim your Motor Vehicle Expenses:

Employment conditions:

To deduct the expenses you paid to earn commission income, you have to meet all of the following conditions:

  1. Under your contract of employment, you had to pay your own expenses.

    Note
    You are not considered to have paid your own motor vehicle expenses if your employer reimburses you or you refuse a reimbursement or reasonable allowance from your employer.
     
  2. You were normally required to work away from your employer's place of business.
  3. You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated.
  4. You did not receive a non-taxable allowance for travelling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometre rate.
  5. You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.

1 Replies
Level 15
Oct 31, 2019 4:02:22 AM

If you meet the following employment commissions and your employer completes and signs the T2200, you can claim your Motor Vehicle Expenses:

Employment conditions:

To deduct the expenses you paid to earn commission income, you have to meet all of the following conditions:

  1. Under your contract of employment, you had to pay your own expenses.

    Note
    You are not considered to have paid your own motor vehicle expenses if your employer reimburses you or you refuse a reimbursement or reasonable allowance from your employer.
     
  2. You were normally required to work away from your employer's place of business.
  3. You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated.
  4. You did not receive a non-taxable allowance for travelling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometre rate.
  5. You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.