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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Heavy Equipment Operators in Ontario and Across Canada

We put your excavators, dozers, loaders and graders in CCA Class 38 at 30% and your haul trucks in Class 10, apply the half-year rule and any immediate-expensing incentive on six-figure machines, run the lease-versus-buy analysis so a capital purchase gets CCA plus deductible loan interest under ITA section 20, reconcile the T5018 slips you receive from the general contractors you bill by the hour and issue the T5018s you owe your own subs, recover the 13% HST input tax credits on your fuel, parts, tires and repairs, and plan the tax on your company. Whether you run an excavator owner-operator, an earthmoving and site-prep company, a grading and loading operation, or a haul-truck and hauling business, we handle the equipment CCA, the lease-versus-buy call, the hourly billing and subcontractor reporting, the operator payroll with WSIB, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.

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AFFORDABLE Heavy Equipment Operator Tax Accountant

For a heavy equipment operator, the machine is the business, and the whole tax story is capital, financing and how the hours get billed. Your excavators, dozers, loaders and graders are power-operated movable construction equipment in CCA Class 38 at 30%, your haul trucks are Class 10, and the half-year rule plus any immediate-expensing incentive shape the first-year deduction on a six-figure machine. Whether you lease or finance changes the deduction pattern entirely: a capital purchase gives you CCA plus deductible loan interest under ITA section 20, while a true lease deducts the lease payment. You bill general contractors by the hour for machine-plus-operator, which makes you a subcontractor. That is why you need a heavy equipment operator accountant who knows the trade. At Gondaliya CPA, we specialize in equipment CCA, lease-versus-buy and subcontractor-billing bookkeeping and corporate tax planning for equipment businesses, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As an excavator, dozer and haul-truck accountant, we work with excavator owner-operators, earthmoving and site-prep companies, grading and loading operations, and haul-truck and hauling businesses across Ontario, with year-round support rather than a once-a-year scramble. We tell you plainly what you can deduct, what you cannot, and where the real profit sits on each hour you bill and each machine you run.

Let us handle the numbers so you can focus on the work that actually pays you.

Gondaliya CPA team - accounting and tax services for heavy equipment operators

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Accounting That Understands How a Heavy Equipment Operator Actually Works

Running an equipment operation comes with financial pressures a desk-bound business never faces. You carry six-figure excavators, dozers and haul trucks that have to be classed and depreciated, you decide whether to lease or finance every machine, you bill general contractors by the hour as a subcontractor, and you burn through fuel, parts, tires and repairs that all carry recoverable HST. At Gondaliya CPA, we understand the financial reality of a heavy equipment business and provide practical, trade-focused solutions across the GTA and all of Ontario.

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Big-Ticket CCA

Your excavators, dozers, loaders and graders are CCA Class 38 at 30% and your haul trucks Class 10, with the half-year rule shaping the first-year deduction.

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Lease vs Buy

A capital purchase gives you CCA plus deductible loan interest under ITA section 20; a true lease deducts the payment. Getting the call right is worth thousands a year.

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Hourly Billing & T5018

You bill general contractors by the hour as a subcontractor, receive T5018 slips, and issue T5018s to any operators you sub out to.

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Fuel ITCs & Running Costs

Your fuel, maintenance, parts and tires are HST-taxable with recoverable input tax credits, your operators run on payroll, and WSIB applies.

Stay Compliant and Minimize Your Heavy Equipment Company Tax

For a heavy equipment business, staying onside with CRA and WSIB and paying the least legal tax are the same job. We keep every filing on schedule while claiming every machine, fuel and equipment-interest dollar the T2 allows, so nothing is missed and nothing invites a reassessment.

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HST, WSIB & Subcontractor Reporting

Your machine-and-operator hours billed to general contractors are taxable at 13% HST, so there is no exempt line to hide behind, and WSIB registration and premiums in the construction rate group are mandatory on your operator wages from the first day you hire. Because equipment operating is construction work, you receive T5018 Contract Payment Reporting slips from the contractors you bill and must issue T5018s to any operators you sub out to. Getting HST, WSIB and T5018 documentation right protects the company from reassessment and from CRA matching letters on your revenue.

CRA Obligations for Heavy Equipment Operators

Staying compliant with CRA means more than one return a year. We manage HST on your billed hours, equipment CCA on Class 38 machines and Class 10 haul trucks, deductible equipment-loan interest under ITA section 20, the T5018 slips you receive and issue, worker classification under RC4110, and payroll source deductions on the PD7A remittance. By monitoring the areas CRA reviews most often on cash-intensive trade files, we reduce your audit exposure and keep your corporation financially sound.

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Year-End Deliverables for Heavy Equipment Operators

At year-end, an equipment corporation needs a proper trial balance and financial statements that carry each excavator, dozer and haul truck at net book value, the chattel loans financing them, your progress-billing receivables from general contractors, and the undepreciated capital cost pools by class, plus a T2 with GIFI that ties to your HST returns. Where a lender is involved, you also need CPA-compiled financial statements for equipment financing. Our team prepares every deliverable on time and in compliance, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Heavy Equipment Operators

Gondaliya CPA heavy equipment operator accounting expertsGondaliya CPA heavy equipment operator tax experts
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Why Choose Our Accounting Services for Heavy Equipment Operators?

1
🎯

Tax Planning — Equipment & CCA Expertise

We know the trade: excavators, dozers, loaders and graders in Class 38 at 30%, haul trucks in Class 10 at 30%, the half-year rule and any immediate-expensing incentive. We deduct equipment-loan interest under ITA section 20 and protect the $500,000 Small Business Deduction.

2
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Consulting — Lease-vs-Buy & Machine Bookkeeping

Our bookkeeping runs the lease-versus-buy analysis on each machine, tracks undepreciated capital cost by unit, and posts fuel, maintenance and parts to the right job. We cost each machine per operating hour so you see the real margin and tie HST to revenue.

3
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CRA Representation — CCA & ITC Audit

When CRA reviews your equipment CCA classes, your fuel and repair input tax credits, or the T5018 slips filed on your hours, we prepare the response, reconcile WSIB, and pursue relief on Form RC4288 where penalties came from a prior error.

4
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Bookkeeping — Payroll, Credit & Sale

We run your operator payroll with WSIB, settle the RC4110 worker-classification question, and get you ready to sell. We model the profit level where incorporating pays off and handle the eventual disposition of your company.

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Heavy Equipment Operator Tax and Accounting Services in Ontario

📄

Corporate Tax Filing (T2) for Heavy Equipment Operators

Professional T2 preparation with Schedule 8 CCA on your excavators, dozers, loaders and haul trucks, deductible equipment-loan interest under ITA section 20, and CRA compliance on every line.

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Bookkeeping & Accounting for Heavy Equipment Operators

Equipment CCA, lease-versus-buy and cost-per-hour bookkeeping with financial statements, clean records, and monthly reporting built for a heavy equipment business.

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Payroll Services for Heavy Equipment Operators

Operator payroll with WSIB in the construction rate group, PD7A remittances, T4s, T5018 slips issued and received, and RC4110 worker-classification support.

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GST/HST Filing for Heavy Equipment Operators

AFFORDABLE HST filing on your billed hours with full input tax credits on fuel, parts, tires, repairs and machines, matched to your T2 to avoid CRA penalties.

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Tax Planning for Heavy Equipment Operators

Smart tax planning to protect the Small Business Deduction, run lease-versus-buy, time excavator and haul-truck purchases, and plan salary, dividends and sale.

Corporate Catch-Up Filing for Heavy Equipment Operators

File overdue T2 and HST years, rebuild missing hours, fuel and equipment records, and get back into CRA compliance with accurate catch-up support.

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CRA Audit Resolution for Heavy Equipment Operators

Expert support for equipment-CCA, fuel-ITC, T5018 and HST audits, with indirect-verification-of-income reviews handled with confidence.

📊

CPA Financial Statements (Notice to Reader) for Heavy Equipment Operators

CPA-compiled financial statements that equipment lenders and banks accept for your heavy equipment corporation.

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Incorporation Services for Heavy Equipment Operators

Full incorporation including NUANS, articles, share structure, and the section 85 rollover from your unincorporated equipment business.

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Catch-Up Bookkeeping Services for Heavy Equipment Operators

Rebuild months of missing books from bank, fuel-card and T5018 records, reconcile each excavator, dozer and haul truck as its own asset, and recover HST input tax credits left unclaimed.

🌐

US Corporation & LLC Tax Filing for Heavy Equipment Operators

Cross-border filing for operators who move machines or bill contractors south of the border, coordinating Forms 1120, 1120-F and 5472 with your Canadian T2 so equipment income is never taxed twice.

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Voluntary Disclosure Program for Heavy Equipment Operators

Come forward on unreported machine-and-operator hours, missed T5018 slips or unremitted HST through the CRA Voluntary Disclosures Program to cancel penalties before CRA contacts you.

Accounting & Tax Services Tailored for Heavy Equipment Operators

Real, practitioner-level CPA expertise for excavator owner-operators, earthmoving and site-prep companies, grading and loading operations, and haul-truck and hauling businesses across Ontario — built for how a heavy equipment business actually runs.

  • We prepare your T2 with GIFI on Schedule 100 and Schedule 125, splitting hourly machine-and-operator revenue from any equipment-rental or hauling income on their correct lines, so CRA’s automated matching never bills tax on a $700,000 file it misreads.
  • We claim capital cost allowance on Schedule 8 with your excavators, dozers, loaders and graders in CCA Class 38 at 30%, so a $220,000 excavator is reclassified out of the wrong pool and depreciated at the correct rate.
  • We place your haul trucks in CCA Class 10 at 30% and apply the half-year rule in the year of purchase, so a $180,000 tandem gravel truck earns a defensible first-year deduction instead of a full-year claim CRA disallows.
  • We deduct the loan interest on your financed machines under ITA section 20 and carry the chattel loan on Schedule 100, so $14,000 of equipment-loan interest a year is written off instead of buried in the principal you repay.
  • We apply the immediate-expensing incentive where available so an eligible machine bought before year-end is written off faster than the half-year rule alone allows, turning a $95,000 loader into a much larger first-year deduction.
  • We sync HCSS, Fleetio or QuickBooks Online so every machine’s hours, fuel and maintenance post to the right job and unit, giving the true cost per operating hour and the six years of records section 230 requires.
  • We reconcile each excavator, dozer and haul truck as its own asset in QuickBooks or Xero, tracking undepreciated capital cost by unit, so a $220,000 machine’s pool is never mixed with a $40,000 pickup at year-end.
  • We carry your progress-billing receivables from general contractors and flag slow-paying accounts, because booking a $90,000 progress invoice as collected before the contractor pays overstates cash and hides a bad-debt claim under paragraph 20(1)(p).
  • We capture every fuel, parts, tire and repair invoice through Dext and reconcile monthly, so the 13% HST input tax credit on your running costs is never lost to a missing ticket and you recover credits most operators leave unclaimed.
  • We separate machine-and-operator hourly revenue from equipment-rental and hauling income in your chart of accounts, so you see which work pays; on one operator this revealed $26,000 of grading hours billed below cost.
  • We set up operator payroll in Wagepoint, withholding income tax, CPP and EI and remitting on the PD7A by the 15th of the following month, so a busy season never eats CRA’s 10% late-remittance penalty on source deductions.
  • We register and reconcile your WSIB coverage in the construction rate group, which is mandatory, and file premiums on assessable wages, so an unregistered company avoids retroactive premiums and penalties on a 2-year lookback that can reach five figures.
  • We settle the RC4110 employee-versus-subcontractor question on your hired operators, because misclassifying a $70,000 operator as a subcontractor exposes you to back CPP, EI and penalties when CRA reviews the working relationship.
  • We prepare and issue the T5018 Contract Payment Reporting slips you owe when you sub work out to other operators, avoiding the $100-per-slip penalty CRA applies to late or missing filings and keeping those costs defensible on review.
  • We reconcile the T5018 slips you receive from the general contractors you bill by the hour against your reported revenue, so nothing a contractor filed on you goes unreported and triggers a CRA matching letter and reassessment.
  • Your machine-and-operator hours billed to general contractors are fully taxable at 13% HST, so we set the right code on every invoice, because equipment operating is a construction service with no exempt line and CRA will assess the tax you missed.
  • You must register once taxable revenue passes the $30,000 small-supplier threshold across four consecutive quarters, and we track the exact quarter you cross so CRA cannot assess back-tax on hours where you never charged HST.
  • We claim the input tax credits your fuel, parts, tires, repairs and machines carry, recovering the 13% HST on line 108 — on one operator we recovered fuel ITCs worth $11,000 a year plus $28,600 on a $220,000 excavator.
  • We handle the HST on progress billings so the 13% is reported when each invoice is issued and reconciled against your receivables, and your remittance lines up with the revenue you recognize on each $80,000 contract you bill.
  • We reconcile the HST on your returns to the revenue on your T2 every filing period, because CRA’s matching program compares the two and a company whose figures disagree by even $5,000 is among the fastest files pulled for a costly audit.
  • We set the salary-versus-dividend mix for the owners, paying enough T4 salary to build RRSP room while the balance flows as dividends, so combined tax stays near the 12.2% Ontario small-business rate; on one owner this deferred $27,000 of tax.
  • We run a full lease-versus-buy analysis before you acquire a machine, weighing CCA plus deductible ITA section 20 interest on a capital purchase against the deductible payment on a true lease, so the call on a $250,000 dozer is worth thousands a year.
  • We keep your active income under the $500,000 Small Business Deduction limit using section 125, and we watch CRA’s associated-corporation and passive-income rules that grind the limit toward the higher general corporate rate.
  • We time your excavator, loader and haul-truck purchases before your fiscal year-end so the half-year rule, the 30% Class 38 and Class 10 rates and any immediate-expensing incentive give the largest first-year deduction against a profitable season.
  • We plan at least two years ahead so your shares qualify for the $1.25M Lifetime Capital Gains Exemption, purifying the company of non-active assets so selling your equipment business defers tax CRA would otherwise collect on the gain.
  • We reconstruct machine-and-operator revenue and job costs from bank deposits, the T5018 slips contractors filed on you and your Fleetio or QuickBooks data across your unfiled years, rebuilding the six years section 230 requires so CRA cannot arbitrarily assess you.
  • Late filing costs 5% of the balance owing plus 1% per month up to twelve months, so we file your oldest unfiled T2 first to stop the penalty compounding and limit the arrears interest CRA charges your corporation.
  • We file the missing HST returns and reconcile the 13% you charged on your billed hours against what you actually remitted, so tax you collected is accounted for and CRA cannot assess back tax with interest on the gap.
  • We rebuild the undepreciated capital cost pools across the unfiled years so missed CCA on Class 38 excavators and Class 10 haul trucks is recovered; on one file this restored $19,000 of depreciation CRA would otherwise have kept.
  • We file a Voluntary Disclosures Program application on Form RC199 before CRA contacts you, because a disclosure accepted under the general program cancels penalties in full and gives 50% interest relief on the older years.
  • When CRA opens an audit, we manage the whole file and answer the equipment-CCA, fuel-ITC and T5018 queries inside the deadlines, so a review of one year does not expand into a reassessment of the 3 prior years CRA can reopen.
  • When CRA runs indirect verification of income on a cash-heavy operator, comparing bank deposits and lifestyle to reported hours, we prepare the source-and-application-of-funds reconciliation within the 30-day deadline.
  • We defend your CCA position when CRA challenges a machine’s class, showing an excavator is Class 38 power-operated movable equipment; on one company we held a $220,000 machine in the correct 30% pool, reversing an early reassessment.
  • We answer fuel, parts and repair input-tax-credit reviews with the supplier invoices and hour logs, because a credit disallowed for missing records cannot be restored later at objection and is money gone for good.
  • We file the Notice of Objection within 90 days of a reassessment and pursue taxpayer relief on Form RC4288 where a prior accountant’s error caused the penalties — protecting your right to the Tax Court and interest you should not carry.
  • We prepare the CSRS 4200 compilation engagement financial statements, the Notice to Reader an equipment lender and a bank require across two fiscal years before they approve the roughly $250,000 financing on an excavator or dozer you need.
  • Your compiled statement of financial position presents each machine at net book value, the chattel loans financing them and your progress-billing receivables, giving a lender the working-capital picture a bare T2 cannot.
  • We build the statement of operations with hourly revenue, fuel, maintenance and operator wages classified consistently across two years and tied to the T2 filed with CRA, so a lender approves the equipment loan.
  • The CSRS 4200 communication discloses that no audit or review was performed, and without it a bank and the Business Development Bank of Canada reject the file and the financing you need to add a machine to the fleet.
  • We deliver the compiled statements within 30 days of receiving your records and the year’s T2 figures, because a $250,000 equipment-financing or lease approval collapses when the lender’s conditional offer expires before the file is produced.
  • We incorporate your business under the Ontario Business Corporations Act, giving you limited liability and the roughly 12.2% Ontario small-business rate; on one owner-operator incorporating saved about $23,000 a year against the exposure an unincorporated operator carries.
  • We complete the section 85 rollover on Form T2057, transferring your excavators, haul trucks and goodwill into the corporation at elected amounts, deferring the capital gain and recapture a straight sale of those machines would trigger.
  • We register your WSIB coverage in the construction rate group before the first hired operator starts, because coverage is mandatory and an unregistered owner faces retroactive premiums for up to 2 prior years plus penalties.
  • We open the corporation’s CRA Business Number, HST and payroll accounts within the first 30 days, set the source-deduction remittance schedule, and close the old accounts so your company never remits the same revenue twice.
  • We structure the share classes and set the first fiscal year-end up to 53 weeks after incorporation, so dividends can later be split among family shareholders and the first T2 and CRA balance-due date are deferred to save the company cash.
  • We reconstruct months or years of missing books from your bank deposits, fuel-card statements and the T5018 slips general contractors filed on your billed hours, rebuilding the six years of records section 230 requires before CRA can arbitrarily assess your equipment company.
  • We reconcile each excavator, dozer, loader and haul truck as its own asset and rebuild the undepreciated capital cost pools by class, so a $220,000 machine is separated from a $40,000 pickup and no Class 38 depreciation is left unclaimed.
  • We comb the backlog for the 13% HST input tax credits hidden in your fuel, parts, tire and repair invoices, recovering credits most operators leave unclaimed; on one file this returned $11,000 of fuel ITCs in a single year.
  • We file the overdue HST returns uncovered in the cleanup and reconcile the 13% you charged on machine-and-operator hours against what you actually remitted, so penalties and interest stop compounding and CRA cannot assess back tax on the gap.
  • We back out the equipment-loan interest deductible under ITA section 20 that was buried in principal repayments across the unfiled years, then deliver a clean, reconciled trial balance with prior-year comparatives your bank or lender can rely on immediately.
  • We prepare your US corporation and LLC returns — Forms 1120, 1120-S or 1065 as they apply — when you move machines across the border or bill American general contractors, coordinating them with your Canadian T2 so the same equipment income is never taxed twice.
  • We handle the cross-border machinery pieces — treaty positions, foreign tax credits and information returns such as Form 5472 and 1120-F — so a Canadian operator with US earthmoving contracts meets every IRS obligation accurately and on time.
  • We map your US filing footprint — nexus, effectively connected income and each state where your crew and equipment work — so you register and file only where the machines actually create an obligation, not everywhere you quote.
  • We reconcile the CCA you claim on Class 38 excavators and Class 10 haul trucks in Canada against the US depreciation on the same machines, so the differing systems do not double-count or strand a deduction on either return.
  • We track filing and estimated-payment deadlines on both sides of the border, so an operator hauling into New York or Michigan avoids the roughly $10,000 in late-filing and failure-to-file penalties the IRS and CRA can each stack.
  • We assess whether you qualify for the CRA Voluntary Disclosures Program and prepare a complete submission on Form RC199 for unreported machine-and-operator hours, missed T5018 slips or HST you charged but never remitted.
  • We come forward before CRA contacts you so a disclosure accepted under the general program cancels the gross-negligence penalties in full and gives 50% relief on the arrears interest for the older equipment years.
  • We calculate your tax, interest and penalty exposure up front, including recaptured CCA where a machine was sold and never reported, so you go in knowing the numbers before anything is filed with CRA.
  • We correct the RC4110 worker-classification exposure at the same time, disclosing operators paid as subcontractors who should have been on payroll, so back CPP, EI and source deductions are settled cleanly rather than assessed with penalties.
  • We manage the full disclosure and any follow-up correspondence with CRA, structuring it to meet the voluntary, complete and penalty-applicable conditions, so a hauler who under-reported $60,000 of cash hours is accepted rather than rejected and reassessed.

Heavy Equipment Tax & CCA Check

Six quick questions on your machines in Class 38, your lease-versus-buy review, your T5018 slips, your equipment-loan interest, your fuel ITCs and whether it is time to incorporate. No fee shown.

1. Are your excavators, dozers and loaders classed in CCA Class 38 at 30%?

2. Have you had a lease-versus-buy analysis run before acquiring a machine?

3. Are you issuing and reconciling the T5018 slips you receive and owe?

4. Are you deducting your equipment-loan interest under ITA section 20?

5. Are you claiming the 13% HST input tax credits on your fuel and repairs?

6. Is your heavy equipment business incorporated?

Free CPA Consultation for Heavy Equipment Operators

Case Studies: Heavy Equipment Operator Accounting & Tax

Barrie Excavator Owner-Operator — Class 38 & Loan Interest

The problem: A Barrie excavator owner-operator billing general contractors by the hour had a six-figure machine depreciated as an ordinary vehicle in the wrong CCA pool, so the annual deduction was far too small. The interest on the equipment loan financing the excavator had never been deducted, the half-year rule was applied incorrectly in the year of purchase, and the 13% HST input tax credits on a full season of diesel were only partly claimed. The result was an inflated T2 and thousands of tax paid too early.

What we did: We reclassified the machine to CCA Class 38 at 30%, applied the half-year rule correctly, deducted the equipment-loan interest under ITA section 20, and recovered the missed fuel input tax credits.

The result:

  • Reclassified a $220,000 excavator to Class 38
  • Deducted $14,000 of equipment-loan interest under ITA s.20
  • Recovered fuel ITCs — a five-figure tax swing

Ottawa Earthmoving Operator — Incorporation & T5018

The problem: An Ottawa earthmoving operator was unincorporated, so strong margins landed on the owner’s personal return at Ontario’s top 53.53% rate with no way to defer the surplus. The operator billed general contractors by the hour and received T5018 slips, but had hired two other operators through the season and never issued them the T5018s owed, exposing the company to $100-per-slip penalties, and worker classification had never been reviewed.

What we did: We incorporated the company under the Ontario Business Corporations Act, moved the excavators, haul trucks and goodwill across on a section 85 rollover with no gain triggered, applied the $500,000 Small Business Deduction so active income is taxed near 12.2%, filed the outstanding T5018s, and fixed the RC4110 worker classification.

The result:

  • Active income taxed near the 12.2% small-business rate
  • Filed prior-year T5018s, avoiding $100-per-slip penalties
  • Corrected RC4110 classification — a material recovery

Hamilton Grading & Site-Prep Operator — Lease-vs-Buy & Books

The problem: A Hamilton grading and site-prep operator was making the lease-versus-buy call on every machine by guesswork, so nobody knew whether financing a loader or leasing it produced the better deduction. Business and personal use of the trucks was mixed together, fuel and maintenance costs were unsorted across units, and there was no cost-per-operating-hour figure to price work from or to defend on a CRA review.

What we did: We ran a proper lease-versus-buy analysis comparing CCA plus ITA section 20 interest against the lease payment, separated business from personal use, and set up equipment, fuel and maintenance tracking by unit in QuickBooks Online with Fleetio feeding the hours.

The result:

  • Lease-versus-buy decided on numbers, not guesswork
  • Fuel and maintenance tracked per machine and per hour
  • Audit-ready books with business use cleanly separated

Our Simple Process

How We Work With Heavy Equipment Operators

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, the equipment list with purchase and financing details, lease and chattel-loan agreements, the T5018 slips you received, progress-billing and receivable schedules, payroll records, fuel and maintenance logs, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Xero, integrate HCSS or Fleetio, build the equipment and undepreciated capital cost schedules by unit, run the lease-versus-buy analysis, classify CCA, and configure payroll and WSIB tracking.

Step 3

Monthly Close

Monthly reconciliations, fuel and repair receipt capture, cost-per-operating-hour job costing, HST on billed hours, and T5018 tracking.

Step 4

Quarterly Planning Review

Salary and dividend mix, HST and ITC review, equipment-loan interest, lease-versus-buy, and excavator and haul-truck purchase timing.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with each machine at net book value and its chattel loans, T2 with GIFI, and CRA preparation.

Get Your Heavy Equipment Company Taxes Done Right Today

Transparent Pricing for Heavy Equipment Operators

Affordable Pricing for Heavy Equipment Operators

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Heavy Equipment Operator Accountant

Meet your lead heavy equipment operator accountant. As your trade and corporate tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from heavy equipment operator and skilled-trade business owners across Ontario and Canada.

Serving Heavy Equipment Operators Across Ontario

Our CPA team provides specialized accounting and tax solutions for heavy equipment operators throughout Ontario. We understand how equipment CCA, lease-versus-buy, hourly billing and subcontractor reporting actually flow through an equipment company, what CRA looks at on a cash-intensive file, and how to put your machines and receivables in the right place.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

2100 Camilla Rd #716, Mississauga, ON L5A 2J8

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Heavy Equipment Operator Accounting & Tax FAQs

Should I incorporate my heavy equipment business?
Incorporating gives you limited liability, which matters when a machine on a busy site can generate a claim, plus a 12.2% Ontario rate on the first $500,000 of active income versus a personal rate up to 53.53% when unincorporated. The decision turns on whether you earn more than you withdraw, because that surplus is what a corporation lets you defer. When it makes sense, we handle the section 85 rollover of your machines and goodwill on Form T2057.
Do heavy equipment operators charge HST?
Yes. Billing a general contractor by the hour for machine-plus-operator is a taxable construction service, fully taxable at 13% HST in Ontario, with no exempt line. In return you claim input tax credits on the 13% you pay for fuel, parts, tires, repairs and the machines themselves, so only the tax on your value added reaches CRA. You must register once taxable revenue passes the $30,000 small-supplier threshold across four consecutive quarters.
What CCA class is an excavator or dozer?
Excavators, dozers, loaders and graders are power-operated movable construction equipment in CCA Class 38, depreciating at 30%. Haul trucks are Class 10, also 30%. In the year you buy, the half-year rule limits the first-year claim to half the normal rate, and any immediate-expensing incentive can accelerate it. Putting a six-figure machine in the correct class matters, because the wrong pool leaves depreciation and tax on the table. We claim it on Schedule 8.
Should I lease or buy my machine?
It depends on the numbers, and the deduction pattern is completely different. A capital purchase gives you capital cost allowance on the machine plus deductible loan interest under ITA section 20, while a true lease lets you deduct the full lease payment. On a six-figure excavator or dozer the right call is worth thousands a year, so we run a lease-versus-buy analysis on cash flow and after-tax cost before you sign anything.
Do I receive or file T5018 slips?
Both. Because equipment operating is a construction service, the general contractors who pay you by the hour issue you T5018 Contract Payment Reporting slips, which you reconcile against your reported revenue. If you sub work out to other operators, you must issue them T5018s in turn. CRA charges a penalty starting at $100 per slip for late or missing filings, so we prepare the slips you owe and match the ones you receive.
How does hourly billing to general contractors work?
You invoice the general contractor an hourly rate for the machine and operator together, tracked from your daily logs, and that revenue is fully taxable at 13% HST. Because you are a subcontractor rather than an employee, no source deductions come off your pay, the contractor reports what it pays you on a T5018, and you carry the receivable until paid. We reconcile your hours, HST and T5018 slips so nothing slips through.
Am I an employee or a subcontractor?
If you own the machine, control your own hours and bear the financial risk, you are almost certainly a subcontractor, not an employee, and CRA settles the question under RC4110 by looking at control, ownership of tools, chance of profit and risk of loss. The distinction drives whether HST, T5018 slips and CPP apply. We review the working relationship and document it so a CRA reclassification does not blindside you.
How do I claim fuel and repair ITCs?
Every litre of diesel, every set of tires, every parts and maintenance invoice carries 13% HST, and as a registrant you recover that tax as an input tax credit on line 108 of your HST return. The credit is only as good as the records behind it, so we capture the invoices through Dext and reconcile monthly. On one operator we recovered fuel input tax credits worth $11,000 a year that had been left unclaimed.
How much corporate tax does a heavy equipment operator pay in Ontario?
An incorporated equipment company pays roughly 12.2% combined federal-provincial tax on the first $500,000 of active income under the Small Business Deduction in Ontario, with income above that taxed at the general corporate rate. On top of corporate tax you charge 13% HST, remit payroll source deductions on the PD7A, and pay WSIB premiums. Unincorporated, the same profit lands on your personal return at rates up to 53.53%, which is why the break-even matters.
What can a heavy equipment operator write off?
Your excavators, dozers, loaders and graders are Class 38 at 30% and your haul trucks Class 10 at 30%, all on Schedule 8. You also deduct fuel, maintenance, parts, tires and undercarriage, equipment-loan interest under ITA section 20 or your lease payments, operator wages, WSIB premiums, subcontractor payments, insurance and yard costs, plus a bad debt under paragraph 20(1)(p) where a contractor never pays. We put each machine in the right class so you are not under-claiming.
How do I deduct my equipment-loan interest?
When you finance a machine with a chattel loan, the interest portion of every payment is deductible under ITA section 20, while the principal reduces the loan on your balance sheet and the machine is depreciated separately through CCA. Many operators miss the interest entirely or bury it in principal. We split each payment correctly and carry the loan on Schedule 100, so on one file we recovered $14,000 of interest a year that had gone unclaimed.
Do I need WSIB coverage for my operators?
Yes. Equipment operating falls in the construction rate group, where WSIB registration and premiums are mandatory from the first day you hire an operator, and many general contractors will not let you on site without a clearance certificate. Premiums are charged on assessable wages, and an unregistered company faces retroactive premiums and penalties on a lookback that can reach five figures. We register you, file the premiums and keep your clearance current.
What accounting software works best for a heavy equipment operator?
We pair a fleet or heavy-construction platform such as HCSS or Fleetio with QuickBooks Online or Xero for the accounting, and Dext for receipt capture. The fleet app tracks machine hours, fuel and maintenance by unit, and we map it to the general ledger so hourly revenue, fuel, repairs and each machine’s costs post to the right accounts. We set it up and maintain it so your HST, CCA and year-end all tie out.

Related Industries We Serve

Accountant for Excavation Companies

  • Heavy-equipment CCA and lease-vs-buy
  • T5018, WSIB and operator payroll
  • Corporate tax filing and HST

Accountant for Demolition Contractors

  • Heavy-equipment CCA and fuel ITCs
  • T5018, WSIB and operator payroll
  • Corporate tax filing and HST

Accounting for Small Businesses

  • Corporate tax planning for small businesses
  • Business tax filing and financial statements
  • Payroll and bookkeeping services

Accountant for Incorporated Businesses

  • T2 corporate returns and GIFI
  • Salary, dividend and SBD planning
  • Compilation statements and incorporation

Heavy Equipment Operator Accounting & Tax Done Right.

T2 filing, HST on your billed hours with full fuel and repair ITCs, Class 38 and Class 10 equipment CCA, lease-versus-buy analysis, deductible equipment-loan interest under ITA section 20, T5018 slips issued and received, and operator payroll with WSIB under one roof. AFFORDABLE flat fees. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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