Revenue Canada said, "Oh hells no" and sent her a letter stating her 10-ride tickets were ineligible because they don't allow for unlimited travel.
As in:
You can also claim the cost of shorter duration passes if:I'm listening to her as we walked up Bay Street this morning and I'm thinking, as she's talking, how in the hell is a Presto card any different because there's no unlimited travel? Unlike a monthly pass where one whose pass is zoned for Oshawa to Union could ride back and forth between the two stations several times in one day if needed, us Presto people have to tap each time, however, one could then ride the last week of a month for zero fare as the discounts would have been exhausted ... but it's not "unlimited". It becomes unlimited within the zone once the discount is exhausted. And to exhaust the discount, you have to do what?
- each pass entitles you to unlimited travel for an uninterrupted period of at least 5 days; and
- you purchase enough of these passes so that you are entitled to unlimited travel for at least 20 days in any 28-day period.
Exactly, ride the damn train for more than 41 times in a month. But to get the tax credit, you have to ride 32 times. In a row. Not randomly throughout the month.
But what about those of us who gave up monthly passes for Presto cards because we didn't want to pay for a full month's worth of rides if we know we're on vacation (or plan for a strike) or have a sick child at home? Revenue Canada says, "Ha ha ha ... suckers ..." :
Electronic payment cards if:I have a few months this year where I did interrupt 32 one-way trips by taking vacation days. Actually more than a few... why? Because I don't work weekends. So, every five days which equals 10 one-way trips, I create an "interruption". So following Revenue Canada's logic, I won't be able to claim for:
- the card is used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days; and
- the card is issued by a public transit authority that records and provides a receipt for the cost and usage of the card.
January
February
March
April
May
June
July
August
September
October
November
December
Right? 2012 will be the first year for many people claiming Presto on their 2011 tax year so I really hope someone can clear this up.
I should have stuck with the monthly pass.
19 comments:
You're scaring me. I ditched the monthly pass so I could accomodate for vacation time! But don't you think "consecutive" would have been used if weekends weren't taken into consideration? I would think uninterrupted means that weekends are assumed. I was told the deal was you had to simply use your Presto card more than 32 times in a month and you could claim so what does Revenue Canada define as an interruption?
Presto's website says: Will I qualify for the Federal Public Transit Tax Credit?
Yes, provided that:
Your PRESTO card is registered.
Following registration, you have taken at least 32 one-way trips on a single transit agency’s system within any 4 week period. At tax time, sign-in to your online account to access your transit usage report for the year. Your transit usage is reported weekly by transit agency.
Revenue Canada doesn't explain it that way but Presto was sold mainly on this premise. So to quote you, THE HELL?
I know! THE. HELL?
I betcha TomW will clear all this up. The guy knows things that we can't understand ...
As Gord said,
At tax time, log in to Presto and it will tell you exactly how much you can claim based on your trips.
But think about it...if you were to take a week off in one month, does it make sense to:
a) buy the 10-ride passes instead of the monthly pass even though you can't claim it? Of course it does, you may not get the credit (which btw is only 16% or something stupid..it's not a write-off), but you pay less than you would for a monthly; or
b) would you rather buy the monthly and get the tax credit for that month, even though when you do the math by subrtracting the credit from the monthly pass cost, you end up paying more than the cost of the 10-rides.
Having said all of the above, I think it's quite pathetic that you can't write off both scenarios....but that's the government for ya!
I'm assuming your friend Jill was audited??? Otherwise, why would they question it?
If they came back on me I'd be involving my MP and MPP (since GO is exclusive to Ontario). It would look pretty bad if the government is pushing public transit, HOV lanes, etc. and then won't allow the deduction.
This is why I love ur website, CJ. There's always the one random anonymous who wades in and puts us all at ease. But still, the anon person is right, both scenarios should apply.
Yes, Jill was audited and that's exactly what I told her to do. Phone up Jerry Ouellette there in Oshawa and bitch. Her trips are consecutive.
Let's face it, at the end of the day the tax break is squat.
Why can't I comment on the "You know what's all kinds of awesome? " story???
All these restrictions on what is a negligible tax break don't encourage public transit use. People who telecommute regularly (like me) are penalized even though we're reducing the congestion on the roads and the transit system(s).
Honestly, I'd like to see a break offered to anyone who uses public transit, even infrequently, instead of driving. Pull up your Presto printout (or hand over your 10 trips) and you get a discount based on what you paid. Easy Peasy.
/soapbox
Becasue she thinks those of us who can text and drive without driving off the road are deviants and should be locked up. Just because you can't do it doesn't mean it's not safe. I've been texting and driving since I got my licence in 2007. It was okay then and now it's not? Because it's just a cash grab for the government. But it's ok to drink coffee and turn on the a/c? Or turn the heat up. Gotta take your eyes off the road to look at the clock? Or the speedomoeter. Guess I can't check my blind spots because I have to take my eyes off the road in front of me to do it. Looking down at a phone is no different and if you've memorized the keys on your phone or have the free apps that let you speak and write the messages for you, then what's the big deal. Who cares what we do in our cars? Focus on the drunk drivers and leave us texters alone.
I can't stop you from talking but I won't engage you. Sorry.
A few years back I was audited when I used the old paper monthly pass and guess what? It was DENIED. Supposedly the monthly pass didn't meet the CRA definition of what was allowed. I appealed the audit and specifically listed how it did meet their criteria (it's on the CRA website) including a place for my name - "THE HELL?" which I had to tell them - That's my signature on the front you fools!"). I won the appeal. BTW this year I submitted my tax return in paper form including the Presto receipts showing the money I put on the card, not my usage report which I could never get to work. Guess what - ALLOWED IN FULL! CJ, tell your friend to appeal the audit.
I done told Jill to appeal!!!
You have to take 32 trips within a 31 day period but that 31 day period does not have to fall within a calendar month. So, if you were off the first week of October, that 31 day period could start the day you returned to work (October 10) and continue for 31 days to November 10.
In the end, you probably still end up screwed out of a month but I figure the advantage not having to slap down $272 at the beginning of the month is somewhat worth it.
CJ, I'm flattered :-)
The short answer is "yes, you can"
The long answer... as you said the requirement is that "the card is used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days;"
The confusion seems to be about "uninterrupted period".
The whole of January is one "uninterrupted period" of 31 days. If you made 32 one-way trips in that time, you're good.
Similarly, the whole of February is one "uninterrupted period" that doesn't exceed 31 days.
You do *not* have ride 32 times in a row - you have ride 32 times within some period of time... and that period of time can't exceed 31 days.
So in summary: ride 32+ times in a any month, you're good.
TomW is awesome.
Yup, glad I went back to my paper monthly pass.
I file my taxes electronically so don't send anything in. The first year you could claim the transit credit I was asked to supply proof of the amount I paid. I copied the front of all my passes and mailed it in. Accepted by CRA - no further action required on my part.
I'll have one month of Presto this year but can't seem to find how to get the proper report off the Presto site. I just printed off the usage summary page.
TomW needs his own blog: Ask TomW.
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