If you use a personal vehicle for business, you may be able to claim motor vehicle expenses on your taxes. Let's go over what the CRA considers allowance motor vehicle expenses to claim.
Both employees and the self-employed may claim motor vehicle expenses. But, there are different rules depending on how you're classified as a worker.
Salaried employees can claim motor vehicle expenses if they meet all of the following conditions:
The CRA lets you deduct:
Remember, if you use your car for business and personal reasons, you may only deduct the portion related to earning income. The CRA requires you to track your kilometres with a vehicle logbook in order to differentiate between business and personal.
Salaried employees can enter their total motor vehicle expenses on Form T777.