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 Here are some tax tips if you use your car for your business or work.
Keep A Journal
Don't just estimate your
automobile expenses. At the beginning of the year you should start a journal and
record the beginning km  on your automobile odometer. At the end of the year you
should record the km on your automobile odometer. Thus you will have a total km
driven in the year. In your record book you should record the km driven for
business with a date destination purpose and km driven. At the end of the year
you will know how many km were driven for business purposes.
Don't forget all
the components of your automobile expenses are deductible in proportion to the
business use. The expenses should be reasonable to the work being
done, and include:
- Gas
- Oil
- Insurance
- Repairs
- Tires
- Toll fees
- Roadside assistance / towing
- Licence and registration fees
- Interest on a loan to buy the car
- Eligible leasing costs
Capital cost
allowance
Repair costs for an accident that happened while you were driving for
business is fully deductible
Automobile
Deductions
Automobile expenses are only deductible on self employment income,
rental income or if you have an employer who requires you to use your vehicle
for work, does not pay all the costs for the related automobile expense and
supplies you with a signed form called T2200 (declaration of conditions of
employment)
The automobile expenses you deduct must be reasonable and
related to the use and all the original receipts must be kept to back up the
expense.
Pat
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CRA Links: Allowable motor vehicle expenses: