Personal Motor Vehicle Use for Business

If you use a motor vehicle for business and personal use, you can deduct only the part of the expenses that you paid to earn income. To support the amount you can deduct, a record of the total kilometers you drive and the kilometers you drive to earn income (Log book) is required. The detailed records in your log book will be used to calculate the deductions for expenses you are entitled to. It is also part of the records reviewed during an audit and must be detailed enough to support the vehicle expense claims.

What is claimable?

Only expenses related to earning an income; they must be reasonable and substantiated by original invoices/receipts:

  • Gas

  • Insurance

  • Maintenance and repairs

  • License fees

  • Parking fees

  • Capital Cost Allowance

  • Eligible interest

  • Leasing costs

For more information and any assistance, please contact us.