Deductible expenses

The types of expenses you can claim for Motor vehicle expenses (not including CCA) include:

• licence and registration fees;
• fuel costs;
• insurance;
• interest on money borrowed to buy a motor vehicle (for a passenger vehicle, complete "Part 18 - Available interest expense for passenger vehicles" of Form T2125, as there is a limit on the amount of interest you can deduct);
• maintenance and repairs; and
• leasing costs (for a passenger vehicle, complete "Part 17 - Eligible leasing costs for passenger vehicles" of Form T2125, as there is a limit on the amount of leasing costs you can deduct).

You can also claim Capital Cost Allowance (CCA), but this amount is to be entered on Line 9936 - Capital cost allowance of Form T2125.

Joint ownership

If you and another person own or lease a passenger vehicle, the limits on CCA, interest, and leasing still apply. As a joint owner, the total amount you and any other owners deduct cannot be more than the amount one person owning or leasing the vehicle could deduct.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2125, Statement of Business or Professional Activities
• Interpretation Bulletin IT-521, Motor Vehicle Expenses Claimed by Self-Employed Individuals

Related topics

• Claiming capital cost allowance (CCA)

Date modified:

2017-01-03