Business -> Vehicle trip log

Keep a trip log

A separate log should be kept for each vehicle which is driven for both business and personal use.  The log should record the date of each business trip, destination, reason for the trip, and the kilometres driven.  The odometer reading of the vehicle must also be recorded, at the beginning and end of each year, to determine the total kilometres driven in the fiscal period.

If you buy, sell or trade your vehicle during the year, be sure to record the odometer reading at that time.

(i) Employees

If an employee travels between home and work, the travel is normally considered personal use of the vehicle, unless there was a business matter attended to between the home and the place of work.  

If an employee travels between home and a customer's place of work, the travel is normally considered business use.

For more information, see the CRA Interpretation Bulletin IT522 - Vehicle, Travel and Sales Expenses of Employees.

(ii) Self-employed

If a self-employed person has a home office and another office or place of business, usually the office outside the home is considered the base of business.  Travel between the home office and the place of business will normally be considered personal use of the vehicle.  

Travel between different premises of the same business would usually be considered business use.

If a self-employed person has only a home office, travel between the home office and a customer's place of work is considered business use, as is any other travel incurred for business purposes.

For more information, see the CRA Interpretation Bulletin IT521 - Motor Vehicle Expenses Claimed by Self-Employed Individuals.

Tax tip:  To avoid problems with your vehicle expense claims, keep a trip log!

Revised: September 06, 2009