Vehicle expenses

Keep a log in your vehicle and make sure to track the Three Ds: Date, Destination, and Distance.

Getting gas, meeting a potential customer, marketing, those are all valid business expenses associated with your vehicle. If you can say you wouldn't have gotten in your car if it wasn't for a business purpose, then document the event as a business expense. Personal expenses associated with your vehicle cannot be claimed.

If you have more than one vehicle, make sure you keep a separate log for each. Vehicle expenses include:

• operating expenses, such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs
• ownership expenses, such as depreciation, provincial tax, and finance charges

For more information, see Guide T4002,Business and Professional Income. You can also use the Automobile Benefits Online Calculator.

Date modified:

2016-02-05