MileIQ: Mileage Tracker & Log

MileIQ Inc.

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Taxes

What Are the Allowable Motor Vehicle Expenses to Claim?

Marin Perez
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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.

Who can claim motor vehicle expenses?

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.

When can employees claim motor vehicle expenses?

Salaried employees can claim motor vehicle expenses if they meet all of the following conditions:

     
  • You're required to work away from the employer's place of business
  •  
  • You don't receive a vehicle allowance
  •  
  • Payment of motor vehicle expenses paid by you
  •  
  • You've kept a copy of your Form T22000, which is signed by your employer.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

What type of motor vehicle expenses can I deduct?

The CRA lets you deduct:

     
  • Maintenance and repairs
  •  
  • Fuel including gas, oil and propane
  •  
  • Insurance
  •  
  • Registration and license fees
  •  
  • Leasing costs
  •  
  • Capital Cost Allowances
  •  
  • Interest costs you paid on a loan for the vehicle.

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.

Where can I claim my motor vehicle expenses on taxes?

Salaried employees can enter their total motor vehicle expenses on Form T777.

MileIQ: Mileage Tracker & Log

MileIQ Inc.

GET — On the App Store

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.

Who can claim motor vehicle expenses?

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.

When can employees claim motor vehicle expenses?

Salaried employees can claim motor vehicle expenses if they meet all of the following conditions:

     
  • You're required to work away from the employer's place of business
  •  
  • You don't receive a vehicle allowance
  •  
  • Payment of motor vehicle expenses paid by you
  •  
  • You've kept a copy of your Form T22000, which is signed by your employer.

What type of motor vehicle expenses can I deduct?

The CRA lets you deduct:

     
  • Maintenance and repairs
  •  
  • Fuel including gas, oil and propane
  •  
  • Insurance
  •  
  • Registration and license fees
  •  
  • Leasing costs
  •  
  • Capital Cost Allowances
  •  
  • Interest costs you paid on a loan for the vehicle.

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.

Where can I claim my motor vehicle expenses on taxes?

Salaried employees can enter their total motor vehicle expenses on Form T777.