Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 14, 2020 7:44:55 PM

Can I track business driven kms and multiply these by CRA's allowance of $0.58/km for first 5000 etc. to compute Auto expense?

0 1 426
1 Replies
Moderator
May 15, 2020 12:11:40 PM

No. For employment or business/rental expenses, using “Mileage” rates is an option in the US, but NOT here in Canada. Per-kilometre rates are used for Medical expenses, Moving expenses & the Northern Residents Deductions. The per-kilometre rate can also be used by Employers when setting automobile and motor vehicle allowances for their employees.

 

This CRA page details what is allowable for Motor Vehicle Expenses for Employees: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses-2016.html#chapter8

 

This is their page on Motor Vehicle Expenses for Self-Employed/Partnerships: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses.html

 

If you have TurboTax Live Assist & Review, here is how to talk to a Tax Expert: https://turbotax.community.intuit.ca/community/navigating-turbotax/help/i-m-using-turbotax-live-assist-review-how-do-i-talk-to-a-tax-expert/00/873764