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Writing off electricity instead of gas?
- Thread starter Darthbenji
- Start date
You're way off on this. Your actual prices aren't anywhere near $0.04/kWh.
Those hourly prices that you linked to only cover the "Electricity Supply Charge" on your bill. Not included are transmission charges, procurement, distribution facilities, taxes, etc., etc., etc. And in order to be on the Hourly Plan you also pay a monthly Capacity Charge that can really add up if you use a lot of power during the highest-demand hours of the year (although if you have solar, it's possible that the Capacity Charge is close to zero, like it is in my case, but most people don't have that luxury).
I'm also on the ComEd Hourly Pricing plan and my actual marginal per kWh cost is closer to $0.08/kWh, which is still a very low price and includes lots of off-peak consumption.
Well, at least one person is celebrating.
Guess it depends on how much you worry about the charging losses in the calculations. Only trouble I have with the 3rd party loggers to track the car usage is the battery drain they can cause.
Garlan Garner
Banned
I have solar ( click my progress link below ) and don't pay for supply charges and transmission charges because I produce way more than what I use. I also don't pay taxes because you only pay taxes on kwh use. I don't use anything....soo...….I'm NOT way off.
And if you think $0.04 ( what I posted ) is way different than $0.08 then.....lol.....ok.
Those are the amounts the CRA finds reasonable if your employer pays a vehicle allowance. If they don’t you write off your business use expenses. Part of that is fuel costs.
Garlan Garner
Banned
Garlan Garner
Banned
No I mean relative....You know what I mean. Lets not play games.Only 100% different
There is essentially no relative difference between 1 penny and 2 pennies even though the amount is doubled.
Come on now.
Struja
“Frost”
Don’t get too excited, there are virtually no real deductions left up here. I miss the days of deducting my mortgage interest as I did when living in NYC.
It’s more what they government will allow an employer to pay an employee to reimburse their work related driving. 55 cents for the first 5000 kms and 49 cents after that. Those amounts are not taxable. If they don’t reimburse you can write off the business portion of expenses you paid to earn an income. So maintenance, insurance, fuel etc. So if you drive 70% for work you can write off 70% of those expenses. It adds up.
And yes, I know what you meant on 4 vs 8. I was kidding which is why I added the
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Garlan Garner
Banned
Hmmm...interesting.
I wonder if I would rather have your health and energy reductions over my mortgage deductions....hmmmm.
No worries though - there is absolutely nothing I can do about it anyway.
aesculus
Still Trying to Figure This All Out
In the US you have to keep a log of your business miles. I kept a spreadsheet of all the business miles I took.I converted the miles to the EPA kWh for the car. I also noted when I went to a supercharger and backed off that energy from the total kWh. I used a flat rate for my energy costs based on my utilities TOU rate for the EV.
It amounted to about $100 for the year even though my percent use was 62%. Most of my business travel was long distance so superchargers played a big role.
It amounted to about $100 for the year even though my percent use was 62%. Most of my business travel was long distance so superchargers played a big role.
There are only a couple of ways that you can write off vehicle expenses in Canada. Either you are self employed or your employer has completed a T2200 (conditions of employment form) that requires you to use your vehicle for business purposes.
I'm self employed and use the mileage based system you mention above as the electricity cost is negligible. My situation is that I use my personal vehicle for business use a percentage of the time. It is the numbers above multiplied by the percentage of business use that the CRA will allow. The T2200 situation is also identical.
The short answer is all you need to keep is a mileage record to figure out the business use percentage.
Through BC Hydro it will cost you about $6.63 to fill your M3 (based on $0.0884/kwh). If you fill it up 4 times per month you're looking at about $320 in electricity used to fill it up. Assuming you drive your vehicle 75% of the time for business use you could see about $240 back on electricity on your taxes. Only you can say if it's worth it or not.
DMC-Orangeville
Audi eTron & John Deere 5100E
....but that percentage that you write off will bite you when you sell your home. It will be subject to capital gains, unlike the balance of your principal residence, which is not subject to capital gains tax.
Caution on doing this, as it is now a requirement by the CRA to list the sale of your home when you file personal taxes.
Kms is an abbreviation for kilometres. He is saying that the CRA (Canada Revenue Agency) allows $0.55 per kilometre driven up to 5,000 and $0.49 thereafter. These amounts are nothing to do with electricity costs.
In Canada these amounts can be 100% expensed by the employer and received by the employee without incurring any tax liability to the employee.
As others have indicated, it's a better option than most other ways of deducting automotive expenses. CRA doesn't care what your gas, electricity, maintenance, lease, insurance cost under this model.
