If you drive your personal vehicle for work-related purposes but don't use it exclusively for business, you can only deduct the portion of expenses that relates to your work use. The CRA allows self-employed people and employees with unreimbursed work expenses to claim a proportional deduction based on the percentage of your total driving that's work-related. For example, if you drive 10,000 km per year and 2,000 km is for work purposes, you may claim 20% of eligible vehicle expenses. The key is tracking your actual work kilometers and maintaining detailed records to support your claim. Partial vehicle deductions apply to several groups of Canadian tax filers: - Self-employed workers who use their vehicle for business activities like client meetings, site visits, or deliveries - Commission-based employees who use their own vehicle for work-related travel - Freelancers and contractors who travel between client locations or job sites - Part-time workers who drive to different work locations - Employees with qualifying work expenses who aren't reimbursed by their employer Employees claiming vehicle expenses must have unreimbursed costs and a form T777 or equivalent employer letter stating they purchased supplies, equipment, or paid vehicle costs for work.
No, estimates aren't sufficient. The CRA requires a detailed mileage logbook with actual kilometers driven for work purposes. You must calculate your work-use percentage based on real data, not assumptions.
You can only claim the portion of vehicle expenses that relates to work use. Claiming more than your documented work percentage can result in denial of the excess deduction or an audit.
No, the CRA only allows deductions for unreimbursed expenses. If your employer covers fuel or maintenance, you cannot deduct that portion.
No, depreciation (capital cost allowance) cannot be claimed on a personal vehicle under any circumstances, even if part of it is used for work.
The CRA can request records for the current year and up to six years back if they suspect discrepancies or unreimbursed work expenses that don't match your logbook.