Deductible expenses

The types of expenses you can claim on line 9281 of Form T2125, Statement of Business or Professional Activities, include:

• licence and registration fees;
• fuel costs;
• insurance;
• interest on money borrowed to buy a motor vehicle (for a passenger vehicle, complete "Chart B - Available interest expense for passenger vehicles" on page 5 of Form T2125, as there is a limit on the amount of interest you can deduct);
• maintenance and repairs; and
• leasing costs (for passenger vehicle, complete "Chart C - Eligible leasing costs for passenger vehicles" on page 5 of Form T2125, as there is a limit on the amount of leasing costs you can deduct).

You can also claim a Capital cost allowance (CCA), but you enter this amount on line 9936 of Form T2125.

Joint ownership
If you and another person own or lease a passenger vehicle, the limits on CCA, interest, and leasing still apply. As a joint owner, the total amount you and any other owners deduct cannot be more than the amount that one person owning or leasing the vehicle could deduct.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2125, Statement of Business or Professional Activities
• Interpretation Bulletin IT-521R, Motor Vehicle Expenses Claimed by Self-Employed Individuals

Related topics

• Capital cost allowance (CCA)
• Claiming capital cost allowance (CCA)

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