If you received a “reasonable” non-taxable motor vehicle allowance and can show that the employment-related vehicle expenses are more than the allowance and voluntarily include the amount of the allowance in income, you can deduct your vehicle expenses if:
- You were normally required to work away from your employer's place of business or in different places.
- Under your contract of employment, you had to pay your own motor vehicle expenses. You are not considered to have paid your own vehicle expenses if your employer reimburses you or you refuse a reimbursement or reasonable allowance from your employer.
- You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.