Question: What vehicle deductions can Canadian mobile professionals claim?
It's important to remember that you cannot claim more in deductions than what you earned in commissions for the tax year. Commission based mobile professionals must also meet strict criteria in order to be eligible to claim these vehicle deductions. See Commission Employee Criteria for details.
Answer:
The following are allowable vehicle deductions for tax purposes as defined by the Canada Revenue Agency:
- Eligible leasing costs,
- Eligible interest paid on loan for the vehicle,
- Insurance,
- Licence and registration fees,
- Maintenance and repairs and
- Fuel and oil.
Vehicle expenses must be reasonable and you must keep all receipts. Keep records for your vehicles and include total kilometres driven, kilometres driven for work purposes. Include date, destination, purpose and distance driven.
Always remember to record kilometres at the beginning and end of trips.