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.