Mileage, do you track your business mileage?? If the answer is no, I highly recommend you consider starting. These miles could be claimable at tax time!
What are business miles? We’re in Canada, so I guess the question would be, what are business kilometres??
Business kilometres are any kilometres put on your vehicle to earn an income. In order to claim these kilometres, you must support your claim with an automobile mileage log book.
For each business trip you complete, keep a log consisting of the following:
- Date
- Starting Point
- Destination
- Purpose
- Kilometres Driven
*Ensure to record the odometer reading at the beginning and end of each fiscal period.
There are many ways to do this; paper notebook, spreadsheet, or an app!
My go to for mileage tracking is an app called Driversnote.
Driversnote is a user friendly app that records all the information you need for your accountant at tax time.
Types of motor vehicles expenses you can claim:
- Fuel
- Maintenance & Repairs
- Insurance
- Registration Fees
- Capital Cost Allowance
- Eligible interest you paid on a loan used to purchase the motor vehicle
- Eligible Leasing Costs
Please reach out if you have any questions about Kilometre Tracking, Allowable Expenses, Driversnote, Etc… I’d be more than happy to help get you set up on the right foot!
*This is not a paid advertisement, just simply my opinion, as I want to make sure my clients have the most accurate info to make the best decisions for their business.
Motor Vehicle Expenses
Allowable Motor Vehicle Expenses