Can I claim car payments on self employed income when I use my vehicle for work


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The following motor vehicle expenses can be claimed for self employment income (Form T2125)

  • licence and registration fees;
  • fuel costs;
  • insurance;
  • interest on money borrowed to buy a motor vehicle (for a passenger vehicle, complete "Chart B - Available interest expense for passenger vehicles" of Form T2125, as there is a limit on the amount of interest you can deduct);
  • maintenance and repairs; and
  • leasing costs (for a passenger vehicle, complete "Chart C - Eligible leasing costs for passenger vehicles" of Form T2125, as there is a limit on the amount of leasing costs you can deduct).
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