Personal Tax Season: Travel Log

If you claim vehicle expenses on your personal tax return, it is important to keep a mileage log.

A mileage log is a record of the distance you drive for business purposes, such as meeting clients, attending conferences, or delivering goods. A mileage log can help you claim deductions for your vehicle expenses on your income tax return, such as fuel, maintenance, insurance, and depreciation. A mileage log can also help you avoid penalties from the Canada Revenue Agency (CRA) if they audit your vehicle expenses. The CRA requires you to keep a detailed and accurate mileage log that shows the date, destination, purpose, and number of kilometres driven for each business trip, as well as the total kilometers that you have driven in the year. You should also keep receipts for your vehicle expenses and proof of ownership or lease agreement. A mileage log can save you money and hassle in the long run, so make sure you start one today and update it regularly.

To maintain a log you can use a notebook, calendar, or there are many apps available for download.

If you have any questions about claiming travel and vehicle costs, please speak to your accountant or see the CRA website for further details (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses.html) .