Example
Danielle owns a hardware store that has a December 31 year-end. She has a van that she uses for the business.

Danielle noted the following for the tax year:

Kilometres driven to earn business income: 27,000 
Total kilometres driven: 30,000 

Expenses:
Licence and registration fees = $ 100 
Gas and oil = $ 2,400 
Insurance = $ 1,900 
Interest = $ 800 
Maintenance and repairs = $ 200 

Total expenses for the van = $ 5,400 

Danielle calculates the expenses she can deduct for her van for the tax year as follows:

(27,000 business kilometres ÷ 30,000 total kilometres) x $5,400 = $4,860 

The deductible business part of Danielle's van expenses is $4,860.

She can claim this amount on line 9281 of Form T2125, Statement of Business or Professional Activities.