Do I claim the full years worth of mileage and just the two months worth of business use since my business has existed? Or last two months of both personal and business?

[jesse-jamieson19]

I started my business on November 15th. When filling out form T777Auto it asks for Kilometers driven for business use throughout the year and then for total use throughout the year. This sets the bases for Percentage of use for the vehicle for the year. If I claim the business use for the 45 days of owning my business and the full use for the year my percentage would be less than 15% but I actually use my vehicle for more than 60% business usage. I could claim the whole years worth of gas and maintenance but I didn't have the business till he end of the year. What values should I be putting in the forms?

[TurboTaxEsther · Accepted solution]

That's a great question. You will enter the vehicle on as an addition as of Nov 15 (even though you didn't purchase it this year, it is considered a change in use) Use the fair market value of the vehicle as of Nov 15 to determine the purchase price for your business. (CCA will be calculated at half the normal since it is part year 15% instead of 30%)

In your case, I would only use expenses incurred from Nov 15 to Dec 31. This may mean you have to figure out insurance and interest etc for 1.5 months. Enter mileage for the same time period. This will allow you to use the 60% and will reflect your business use of your vehicle.

Also, you should not be filling out the T777. You should use the T2125 business

[jesse-jamieson19]

Thanks for your answer! I am a little confused on a couple things though.
Form T2125 says not to claim fuel and maintenance on that form and use the vehicle expense form. Can I claim it anyways because I am also claiming the vehicle as a business asset? If not, Does claiming the vehicle on form T2125 as an addition under Assets(CCA) for November 15th show CRA that the information I am claiming on form T777 is based on that Date?

[TurboTaxEsther]

Form T777 should be deleted altogether. There is a spot on the T2125 for your business use of auto.