I just mailed the application for the ecoAUTO rebate. Now I wonder how Canada Revenue Agency (CRA) will consider that money. Not sure whether or not it will be considered as part of my taxable income. Any idea? In the mean time I will call CRA.... Thanks.
Update. Called CRA (1-800-959-8281) talked to an agent. Answer: they do not know!. They gave me another number to call (1-866-330-3304). Hopefully more to come.
it's not income, it's a rebate, therefore not taxable... there's a surcharge on less efficient vehicles... by your argument, the people receiving surcharges would get CREDITS on their tax returns while you are charged income tax on yours... the only reason they didnt simply take the $$ off at the point of sale is that they're the govt and it's too hard for them to figure that out! stop turning over rocks that dont need to be turned over.. you'll only confuse them more!
Finally heard back from Canada Revenue Agency. They told me that since I bought the car for personal use I do not have to add the $2,000 I will -eventually- get from Transport Canada to my income. Hope this helps. Feel free to call the numbers I provided and ask. Please update the thread if you find some other information.
Technically speaking, it's treated as a grant, and not a rebate, as it's not like the Ontario provincial rebate, which is a rebate on the PST paid on the vehicle, up to a certain maximum ($2000 for the Prius), whereas the Transport Canada money is actually a grant. So technically, it does need to be reported as income. However, because it's for personal use, it will likely be overlooked anyway. MAB
