Line 9281 - Motor vehicle expenses (not including CCA)

If you use a motor vehicle for business and personal use, you can deduct only the part of the expenses that you paid to earn income.

However, you can deduct the full amount of parking fees related to your business activities and supplementary business insurance for your motor vehicle.

To support the amount you can deduct, keep a record of the total kilometres you drive and the kilometres you drive to earn income. See Calculating motor vehicle expenses for an example.

You can deduct expenses you incur to run a motor vehicle you use to earn business income on Form T2125. Complete "Chart A - Motor vehicle expenses" on page 5 of Form T2125, Statement of Business or Professional Activities, to help you calculate the amount of motor vehicle expenses you can deduct.

If you are a partner in a partnership, personal motor vehicle expenses incurred for the business have to be claimed as Other amounts deductible from your share of net partnership in Part 6 on page 2 of the form.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2125, Statement of Business or Professional Activities

Related topics

• Motor vehicle expenses