Personal Finance

Do I need to keep Gas Recipts for Tax Purposes

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  • Jun 23rd, 2015 8:34 am
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Deal Addict
Nov 26, 2011
2184 posts
252 upvotes
Ottawa

Do I need to keep Gas Recipts for Tax Purposes

I am self employed and use my car for work. I have 3 cars but one is mainly to go to work and use it for work. I average about $400-$500/week in gas for that one particular vehicle. That ends up being lots of receipts for a month. If I am going to put gas as my expense for tax purposes would I need to keep all those receipts? I pay 100% of my gas bills using my credit card and have a record is that enough. Or do I have to keep the receipts?
4 replies
Sr. Member
User avatar
Nov 3, 2008
682 posts
980 upvotes
National Capital Reg…
Absolutely keep the receipts. How can CRA know $80 at a gas station is for gas and not for tobacco, for example? Receipts will itemize "gas @ $xx/L * xxL = $xxx", which is what you need to justify expenses in review/audit.

+keep a log where vehicle driven/why/and distance (odometer readings)
Deal Expert
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Feb 11, 2009
20055 posts
9836 upvotes
Toronto
NCR-Manchester wrote: Absolutely keep the receipts. How can CRA know $80 at a gas station is for gas and not for tobacco, for example? Receipts will itemize "gas @ $xx/L * xxL = $xxx", which is what you need to justify expenses in review/audit.

+keep a log where vehicle driven/why/and distance (odometer readings)
I've been told that credit card statements will be fine as long as it is deemed reasonable. I.e. if it is likely you drove 10,000km for business purposes, if you can calculate 10,000km/milage of say 10l/100km, would give you 1000 L, and use an average price for that year what ever it was say $1.20...If you're expenses were give or take $1200, based on your evidence, it would be deemed reasonable.

(numbers above are for illustration only and mean nothing)

I personally try to keep individual receipts where I can though for sure.
Realtor (Investment Properties) - CPA, CA
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
I just use Fuelly.com to track gas purchased and km driven.

For CRA it's keeping a logbook of business mileage that's the big thing. Receipts would just prove out those details, but they're not the primary concern.
Member
Sep 17, 2009
243 posts
30 upvotes
Toronto
If you are using Quick method for your tax, you don't need receipts as long as your expenses are reasonable (as plan B, I assume you are paying bills using credit card). As somebody said, you need some logbook for all trips.

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