Vehicle Expenses and CRA: What You Need to Track

Vehicle expenses are one of the first things a reviewer asks about. A round number with no log is a weak claim.

What you actually need

For a motor-vehicle claim you typically need:

CRA publishes the current optional per-kilometre rates each year. Those rates are not a substitute for a log. They are a rate applied to kilometres you can support.

Two honest methods

Some people claim a share of actual costs (business km ÷ total km). Some use the prescribed per-kilometre rate. Mixing them carelessly, or reconstructing a year from memory, is how claims get reduced.

Log the trip when you park. Keep the fuel slip with the rest of the shoebox. Mileage and receipts belong in the same pack.

This is not tax advice. Confirm the method and the current rate with your accountant or CRA.

All posts · T2125 pack · GST and HST