Motor vehicle records

You can deduct motor vehicle expenses only when they are reasonable and you have receipts to support them.

To get the full benefit of your claim for each vehicle, keep a record of the total kilometres you drive and the kilometres you drive to earn business income.

For each business trip, keep a log listing the following:

• date
• destination
• purpose
• number of kilometres you drive

Record the odometer reading of each vehicle at the start and end of the fiscal period.

If you change motor vehicles during the fiscal period, record the dates of the changes and the odometer reading at the time you buy, sell, or trade the vehicle.

If you use more than one motor vehicle for your business, keep a separate record for each vehicle that shows the total and business kilometres you drive, and the cost to run and maintain each vehicle. Calculate each vehicle's expenses separately.

See additional information about Business records.

Forms and publications

• Business and Professional Income guide (T4002)
• Keeping Records guide (RC4409)
• IT521, Motor Vehicle Expenses Claimed by Self Employed Individuals

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