Do you use your vehicle for work? Did you know you can use a percentage of your car expenses in your tax return?
Here are some of examples of important information when using car expenses as deductions:
1. Keep a mileage log: A detailed logbook is the best defense to support any vehicle expense used as a tax credit. For each business trip, you will need the following information: -date -destination -purpose -the reading of your odometer before and after your trip
If you do not wish to keep a paper log, there are many apps on the market to help the task of keeping an accurate log. Please also remember to jot down the odometer reading on your vehicle at the start and end of the fiscal year.
2. If you are using the detailed method, keep all your vehicle receipts. Yes. Even that gas receipt when you tanked up right before leaving for your road trip to Vancouver. The calculations for the allowable expense use your TOTAL vehicle expenses. You are short changing yourself if you keep only gas receipts from the times you filled up right before a client meeting.
3. If you are an employee, get a T2200 (Conditions of Employment) signed by your employer.
Have more questions? Do not hesitate to contact us!