• Last Updated:
  • Sep 18th, 2017 9:47 pm
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[OP]
Sr. Member
Jan 2, 2013
871 posts
97 upvotes
Etobicoke

Claiming mileage

I have a small business that revolves around electronics and e-commerce. Because almost all of it is online, I never considered keeping a logbook for my driving.
Today, I had to drive from Mississauga to Brampton and back (45km round trip) to pick up some products.

To be able to claim this (and again, it'll be no more than a few times a year), can I :

a. Just do simple math and claim 45km x 0.54$/km (2016 ON rates per CRA) = 24.3$ as a business expense.
b. Keep track of all of my driving for the year (97% of my driving is personal, 3% business) and go into details with odometer readings, fuel bills, etc.

Thank you for the help!
6 replies
Deal Fanatic
User avatar
Nov 19, 2004
7128 posts
897 upvotes
Cambridge, ON
Option b is the correct way. Option a using that 0.54/km is not intended to be used that way and will just be rejected if they look into it.
[OP]
Sr. Member
Jan 2, 2013
871 posts
97 upvotes
Etobicoke
Thanks. How would I go about guesstimating my mileage now? I've had the car since before this year, but the business was officially launched in July only.

And, from a curiousity perspective - where does the $0.54/km thing come in if I can't use it for such light use?
Deal Addict
Aug 19, 2013
2389 posts
966 upvotes
apoorv wrote:
Sep 9th, 2017 9:51 am
Thanks. How would I go about guesstimating my mileage now? I've had the car since before this year, but the business was officially launched in July only.

And, from a curiousity perspective - where does the $0.54/km thing come in if I can't use it for such light use?
The per km rate is for companies re-embursing employees on a tax free basis. So your corporation (if you are incorporated) could pay you that amount. If you are operating at a sole prop you can't expense things this way. You must track your percentage of business use and your actual costs. Then expense a % of these costs based on your business usage.
[OP]
Sr. Member
Jan 2, 2013
871 posts
97 upvotes
Etobicoke
Thanks, not incorporated but starting to keep a detailed log now!

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