In order to claim automotive expenses, you will require a T2200 â€œConditions of Employmentâ€ form signed by your employer that states that you were required to use your automobile for employment purposes.Â However, if you were reimbursed by your employer or received a reasonable allowance you will not be able to claim any auto expenses.
You can claim the employment portion of expenses such as fuel, repairs and maintenance, CAA membership, license, parking and insurance. As well, you can claim lease expenses or amortize the cost of your personal vehicle. Please be aware that there are limits to these expenses.
The key to claiming auto expenses is maintaining a log of your kilometers traveled for business purposes and also the total kilometers driven throughout the year. In the log you need to track the dates along with where you went and what was the reason for the trip. You can log these kilometers via spreadsheets or you can use an application such as MileIQ to track your miles. This application on your phone is easy to use as it knows when you are driving. All you then have to do is categorize the trip via a simple swipe to the left or right.
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