If you use your motor vehicle in your business, you can deduct reasonable motor vehicle expenses. Some people who earn employment income can also claim motor vehicle expenses if they are required to work away form their employer's place of business.
Usually, the employer has to sign Form T2200, Declaration of conditions of employment to legitimize the claim.
The types of expenses you can deduct include
- fuel costs
- maintenance and repairs
- insurance
- license and registration fees
- capital cost allowance
- eligible interest
- eligible leasing costs
The expenses should be reasonable and you have receipts to support them.
If you use the motor vehicle for business (employment) and personal use, you can deduct only the part of motor vehicle expenses that you paid to earn income. To support the amount you can deduct, always keep a record of the total kilometers you drove and the kilometers you drove to earn your income.
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