My employer pays for my personal vehicle including loan payment/gas/maintenance. The vehicle is in my name and is used for business and personal use (approximately 80/20). Can I write off vehicle depreciation or anything else on my tax return?
My employer adds this as income to my taxable income on my T4; as this my personal vehicle used for both business and personal use, should the entire loan payment amount be added as income?
Yes, if the reimbursement is added to your income, then the allowance you are getting is considered unreasonable (which is why it is taxable). If it is not to be taxable, the reimbursement would have to be based on a per km usage of your car. You can deduct all expenses of the car using the form T777 Employment Expenses, and you will need to get the form T2202 (Conditions of Employment) signed by your employer so that you are able to claim your auto expenses. Auto expenses include: gas, maintenance, insurance, parking, license plate and drivers license payments, depreciation, interest on car loan, or lease payments.