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?


Answer

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.

http://www.cra-arc.gc.ca/E/pbg/tf/t777/t777-fill-13e.pdf

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/tmbl/llwnc/rts-eng.html

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