Can vehicle expenses be claimed when receiving a 44 cents per KM allowance and if so can the expenses include CCA?

If the percentage of vehicle expenses for business use is higher than the 44 cents per KM allowance my company provides, can I claim the difference? If so should the expenses I claim include the Capital Cost Allowance or just the Fuel, maintenance, insurance and license expenses?


First you would need to have your employer sign a T2200 stating that the mileage is necessary, and that the reimbursement is at $0.44.  You would then claim the additional km at what ever the allowed mileage rate is in your province.  You would claim only the difference between the allowed rate and the reimbursed amount.

Now the hard part: CRA is not crazy about employment deductions, because they have allowed the WITB (working income tax benefit) and the Canada Employment credit  of a portion of $1,127.  They may ask you to prove how many kilometers you drove.  Usually they want a log.  They may also want you to prove that your costs are more than what you are reimbursed.  You can claim actual expenses, oil, fuel, insurance, repairs, etc.  CCA can be claimed, but there can be issues later with that.

Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community