Do I have to prorate the Fuel , Insurance etc or the program will compute for that?

Turbo Tax asked for the total mileage traveled and the portion traveled for business so there is data that Turbo Tax can use to prorate.   Will Turbo Tax automatically prorate the expenses or do I have to put in the total amount for each expense (e.g Fuel, Insurance etc)?


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According to you have two options to calculate these expenses. If you have all of your receipts you can do the detailed method, and TT does not need to prorate, but if not,  you can use option two, the simplified method, and TurboTax will prorate work related mileage based on CRA data.

Documenting Travel Expenses – Detailed Method

Similar to meal expenses, there are two ways to document your travel expenses. The first is to document your vehicle expenses with the detailed method. If you use this method, you need to keep all your receipts and deduct the actual amount spent for moving expenses or for northern residents deductions.

You have the choice of deducting vehicle expenses incurred during the year or during the 12-month period ending in the year you chose for claiming medical expenses. Consider claiming in the time period that maximizes your vehicle expenses and reduces your taxes payable. Vehicle expenses you can claim include operating expenses like gas, licence and registration fees, repairs and oil changes and ownership (capital) expenses like auto loans, depreciation and provincial tax.

When you use this method, you have to tally how many kilometres you’ve driven during the year, along with how many kilometres you’ve driven specifically for expenses incurred for medical and moving, or the deduction for northern residents. Your claim for vehicle expenses is prorated based on your total travel distance. For example, if you travelled 5,000 kilometres in your car in 2014, and 40 percent was for medical expenses, you are allowed to claim 2,000 kilometres (40 percent) of your travelling costs on your tax return.

Documenting Travel Expenses – Simplified Method

You can also document your travel expenses using the simplified method. As with meal expenses, there’s less paperwork to worry about as you don’t need to keep every single receipt, although the CRA still might ask you to provide some documentation to back up your claim.

The simplified method allows you to claim for a flat amount per kilometre for travel expenses for medical and moving or the deduction for northern residents. You have to tally how many kilometres you’ve driven during the year specifically for expenses incurred for medical and moving or the deduction for northern residents. As with the detailed method, you can deduct vehicle expenses incurred during the year or the 12-month period ending in the year you claim medical expenses.

The 2014 rates have yet to be released, but for 2013, the rates ranged from 47.5 to 63.5 cents per kilometre driven. To figure out the amount you’re able to claim, you must multiply how many kilometres you’ve driven by the rate in the province or territory where your travel started

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