Travel
Can I write off Motor Vehicle Expenses in Canada?
PERCENTAGE BASED
Explanation
You can deduct vehicle expenses (gas, insurance, repairs) based on the percentage of kilometers driven for business. You must keep a logbook to prove this percentage. There are strict caps on how much you can deduct for luxury vehicle leases ($1,050/mo + tax) and interest ($350/mo).
💡 Pro Tip
Download a mileage tracking app (like MileIQ). The CRA is notorious for auditing vehicle expenses and rejecting claims that lack a detailed logbook.