Yes, gig workers who use a vehicle for income-earning activities can claim vehicle expenses on their Canadian tax return. This includes expenses related to a car, motorcycle, bike, or truck used for Uber, DoorDash, Skip the Dishes, or similar platforms. The CRA allows you to claim either actual vehicle expenses or use a simplified mileage rate, whichever works better for your situation. Gig workers can claim a range of vehicle-related costs as long as the expenses are directly tied to earning income: - Fuel and gas (actual costs or based on mileage) - Vehicle maintenance and repairs (oil changes, tire replacements, brake service) - Insurance premiums (only the percentage related to income-earning use) - Vehicle registration and licensing fees - Parking fees and tolls (incurred during work shifts) - Depreciation or lease costs (if you own or lease the vehicle) - Vehicle financing costs (interest on loans, not principal) - Car washes and cleaning (related to work) You cannot claim personal commuting expenses or costs for trips unrelated to gig work. The key is documenting that each expense is directly connected to earning income through your gig platform. With this approach, you track and claim your real vehicle costs.
Yes, the CRA requires you to keep receipts and supporting documents for all vehicle expenses you claim. This includes fuel, maintenance, insurance, and repairs. If you use the mileage rate method, you need odometer readings and a mileage log instead of individual fuel receipts.
Yes, you can claim the percentage of vehicle expenses that directly relate to your gig work. For example, if you use your car 40% for gig work and 60% for personal use, you claim 40% of your total vehicle expenses.
Vehicle expenses are actual costs (fuel, maintenance, insurance) that you calculate as a percentage of business use. Mileage deductions use a CRA-set rate per kilometer. You choose one method, not both. The mileage method is simpler; the expense method may save more money if you have high costs.
Yes, if you own the vehicle, you can claim Capital Cost Allowance (CCA), which is depreciation. This is only available under the actual expense method, not the mileage rate method. You calculate the deductible percentage based on the vehicle's original cost and business use percentage.
GST/HST registration is separate from vehicle expense claims. You must register if your gig income exceeds $30,000 per year. Registering lets you claim Input Tax Credits on vehicle expenses, which can save you money, but it's not required to claim regular vehicle deductions.