Bookkeeping tip 9 of 10 – Vehicle Usage

If you use your vehicle for your business you can write off some of your motor vehicle expenses.  You can only write off the percentage that is used for business.

Be prepared to prove it to CRA.  You will need a log book with details of your business usage.  I use an app that logs all of my travel and emails me a summary each week.  I also have clients who keep a notepad in their car and document their car’s mileage each time they get in and out of the vehicle.  If the travel was business-related, they indicate what they were doing.  Another option is to note your travel on each page in your datebook.

This can be a great business deduction, but you MUST be able to prove to CCRA that your vehicle use is for business or they will disallow it.