MetroPass Tax Deduction Wrinkle Presents Problems For T.T.C.
Posted June 19, 2006 12:00 pm.
This article is more than 5 years old.
Well, when June is done, you can throw your MetroPass out – but keep any you buy after that.
Stating July 1st, you’ll need them as proof to get a deduction on your income tax.
Canada’s Revenue Agency has now outlined what will count for lopping a few bucks off your already burdensome income tax form next year. And it creates something of a dilemma for the T.T.C.
Your pass needs to show that it was used for a month (or longer depending on your system), the month it was valid for, which system it was used on, how much you paid for it and the identity of the user.
The problem for T.T.C. riders: the transit system recently switched to a transferable pass, meaning anyone can use it and it no longer contains your picture or your name.
Revenue Canada advises if all the required info isn’t there, you’ll have to get a receipt, keep cancelled cheques or retain credit cards records. But collectors can’t take credit cards and there are no current mechanisms in place to issue any proof of purchase.
The Commission tells CityNews officials there aren’t quite certain yet how they’ll be handling that problem, but they’re checking into it.
T.T.C. spokesperson Marilyn Bolton admits the regulations caught the Red Rocketeers by surprise. She points out there’s a serial number on each pass, and the government can easily be made aware of the price the Commission charges for its passes – but she’s not sure that will be enough to satisfy the taxman.
And as for giving out receipts? “As you can imagine, that would be just such a huge job to put that into place,” she tells CityNews. “It’s not something you do lightly, you can’t just say now we’ll be giving out receipts.” She agrees that would slow down lines at kiosks too much and it’s not feasible.
Your best bet for now? Keep all your future passes beginning in July, as the T.T.C. and the government try to iron out a workable solution.
- The tax credit applies to any kind of transit pass within Canada, including buses, streetcars, subways, commuter trains and ferries. And you can also claim for spouses and children, provided you have the proof.
