Are you self-employed use your car for work? Maybe you are an employee and your employer pays for all expenses related to the vehicle you use for work. A mileage log is an important step in using your vehicle as a tax write-off. Keeping poor records can result in an expensive blunder if CRA decides to come knock on your door for a surprise audit.
A detailed logbook is the best defense to support any vehicle expense used as a tax credit. For each business trip, you will need the following information:
If you do not wish to keep a paper log, there are many apps on the market to help the task of keeping an accurate log. Please also remember to jot down the odometer reading on your vehicle at the start and end of the fiscal year.
As a side note, if you change your vehicle during the year, please keep all details of the sale of your vehicle and the purchase of your new one. Don’t forget to record the odometer reading on both your old vehicle and the new one!
Have more questions? Do not hesitate to contact us!
Why pay for a professional tax preparer? I am happy you asked! It is so tempting when there are tax preparation software companies that boast that it is just like having an accountant guiding you through the tax preparation journey. Here is the thing, even with a tax software you can get yourself in trouble doing your own taxes or maybe you have more questions and cannot find the answer.
Do you have children living with you? Beyond the joy and the fingerprint smudges, they can also provide you with some tax credits if you have had to pay a daycare, day nursery schools, caregivers providing child care services, day camps and day sports schools, boarding schools, overnight sports schools or camps where the room and board is involved.