Only motor vehicle expenses incurred during business use is eligible for deduction. The CRA considers travel between home and the principal place of business to be personal use.
In order to substantiate your motor vehicle claims, you should keep a detailed logbook to track the business/personal use of the vehicle. The Income Tax Act does not prescribe the documentary requirements for the logbook.
However, it is a good idea for the logbook to include the date of the trip, reason for the trip, and mileage. With the development of the mobile technologies, you may be able to use mobile applications to track vehicle travel.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.