Can I claim vehicle expenses if the car is not in my name?

You can claim fuel, repairs and insurance costs.  You will need to keep a log to prove business mileage.  You will need the starting and ending mileage each year.  The log determines how much is claimable based on actual business use. Be sure to keep your documentation and mileage log available if CRA requests it, and an explanation of your situation.

 

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Eventhough the vehicle ownership is not in my name? I have proof I pay the monthly payment from my bank account and am the name on the preauthorized form. Do I only claim gas, repairs I pay for and mileage? Can I put the vehicle in CCA area?

You can claim CCA on something that you don’t something that you don’t own, provided that you are the “beneficial owner” of the asset. This means that you have the same benefits and risks as if you did own it. 

Thanks Susan, I did do a run through of the self- employed business income and expenses but not sure how to enter in the vehicle financed since 2017 into CCA. The business started Sep 28 and I already had the vehicle (in my father's name, I am the primary driver, I make the payments). The CCA has fields for vehicles bought/sold during the tax year, not already existing when the business started. I was only able to enter the gas, insurance, and mileage.  Also, as a subcontractor, can I claim safety equipment - hard hat, work gloves, safety vest? I also took 2 online safety training courses but unsure where I enter these.

As your business started in 2022, you would enter the car as an addition, even though you bought it in a previous year. You would have to figure out what the Fair Market Value (FMV) of the car was when you started using it for your business, as that will be the price you “bought” it for in 2022. 

 

If your sub-contracting work was done a s part of your self-employed business, then yes, you can claim the safety equipment. You can enter it as Other Expenses (Line 9270). If you took the safety courses to acquire new skills, then you can’t claim them as business expenses. However, you might still be able to claim the Tuition credit or the Canada training credit (CTC) for those courses.

What about the cellphone? It was financed and I pay data monthly. I use it for business and personal. Where do I enter it? It is stated under Business Use of Home is where I can claim phone/internet. I don’t have Business Use of Home expenses, or a room used only for business, I use my family’s laundry room to clean equipment and the garage to store small tools. I have completed the Tax Self-Employed for the Vehicle Expenses (gas, insurance on parents’ policy but I pay them from my bank account) and Mileage.  I am hoping I can claim the cellphone, safety equipment and courses to help reduce the taxable income even further but unsure where to claim these. There is a refund using gas, insurance, and mileage. I entered the vehicle in CCA, but it reduces the refund to $0.00. No benefit.

If you aren’t going to use the “Business use of Home” section, then you can enter your phone expense in the box marked “How much did you pay for Telephone and Utilities on your business property?”. You can claim the safety equipment as Other Expenses. 

 

If you took the safety courses to acquire new skills, then you can’t claim them as business expenses. However, you might still be able to claim the Tuition credit or the Canada training credit (CTC) for those courses. If you were just upgrading existing skills, then you can also put the courses in Other Expenses.

 

Taking CCA is optional. If it’s not benefiting you, then you can change the amount of CCA that you are taking, so you can leave use it in future years. You can do this on the “Your Vehicle Expenses Summary” page by changing the number in the “CCA For Year” box. 

 

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Thanks. My questions were answered. I prefer to prepare myself as there are minimal income and expenses. The Assist & Review product cost is more than the refund I calculated on my own.