Some sole proprietors, corporations, and commissioned employees can deduct eligible vehicle costs when the car is used for work. CRA decides what qualifies. A Roam plan may be treated like a rental expense if your use supports it. Talk to your accountant. This is general information, not tax advice.
Do you own a car, and do you spend time in traffic driving to meet clients, going to appointments, or generally just need a vehicle to do your job!?
And have you ever wanted to know how you can expense your vehicle, but aren’t sure where to begin?
Well, if you’re a sole proprietor, small business owner, or even full time employee, then you could be writing off up to $900 dollars of your monthly car payment, plus other expenses!
And if you’ve ever wanted to know how to write all this off to avoid a CRA audit, there’s 1 simple trick you should know! Andrea, Head of finance with Roam, is going to help you in the next few minutes to break down how to save money by writing off your car payments, some of her favourite tools to make it easy to do, and the key things you should know to be confident in the process!
She's also shared a free Google Sheet Template that you can use to track your mileage!
Keep a logbook of business versus personal kilometres, save invoices from roam.auto, and ask your accountant how HST input tax credits apply in Ontario. Rules differ for employees versus businesses. For the current CRA position, use the official motor-vehicle expense pages linked below — do not rely on this article for filing.
