If your job involves a lot of driving, there are significant deductions that are available to you.
Whether you drive your own personal vehicle for work or your corporation owns a car that you use, it’s important to keep track of the kilometres you drive for work. There are three basic ways to create a log that will stand up to a CRA audit.
In-vehicle device
- There are a number of GPS devices you can buy that sit in your car and track your trips for you. One we often recommend is TripLogik. It is a little more costly but the ease of use and convenience may outweigh the price.
Smartphone app
- There are dozens of apps available for your smartphone that help keep track of your trips.
Old school
- For less than $10, you can purchase a log book that fits in your glove compartment.
Whichever method you choose, be sure to keep track of the starting and ending locations of your trip, along with a brief description of the purpose. It may seem like a lot of work at first but it soon becomes second nature, and when CRA decides that your company is the one they want to audit this year, you will be thankful that you put in the little effort that could save thousands of dollars.
For more deductions, download our corporate or sole proprietor checklists.