Canada Revenue Agency
www.cra.gc.ca
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Motor vehicle expenses
If you use your vehicle occasionally for business, it may be easier for you to claim gas and other expenses for each trip. For example, taking children to a park or on a day's outing might involve expenses for gasoline, parking, and entrance fees. These are all business expenses that you can claim.
However, when you regularly use your vehicle for business and personal use, you can claim the part of the total operating expenses for business use.
If you are claiming motor vehicle expenses, you will need a record of the personal and business kilometres you travelled. If you change vehicles during the year, record the mileage for each vehicle when you start and stop using it.
Keep accurate records to show the portion of the total kilometres that were driven to earn business income. For more information on motor vehicle records, see Keeping daycare records.
Operating expenses include:
- licence and registration fees;
- insurance;
- gas and oil;
- maintenance and repairs;
- the interest you pay on a loan to buy a vehicle; and
- leasing costs.
Do not include capital cost allowance (CCA) in your operating expenses. It is claimed on line 9936 of Form T2125, Statement of Business or Professional Activities. For more information about CCA, see Capital cost allowance (CCA) for your daycare.
Note
There is a limit to the amount of CCA, interest, and leasing costs you can deduct for the vehicle that you use for your daycare. We explain these limits under "Motor vehicle expenses" in Chapter 3 of Guide T4002, Business and Professional Income.
See Calculating motor vehicle expenses for calculating the amount you can claim. Report this expense on line 9281 of Form T2125.
Forms and publications
- Guide T4002, Business and Professional Income
- Booklet P134, Using Your Home for Daycare
- Form T2125, Statement of Business or Professional Activities
