If you are required by your contract of employment to use your vehicle in the course of your work, you are entitled to deduct an appropriate portion of your automobile expenses. Your employer is required to complete and sign a form T2200 prior to you making any deductions. You can claim costs such as fuel, repairs and maintenance, insurance, tolls, car washes, parking and licenses. You are allowed to also deduct lease payments leased vehicles and depreciation and interest on owned vehicles. You must maintain a vehicle log of your business km driven for the year, in addition to knowing your total km for the year. Driving to or from your regular place of business does not constitute driving for business purposes unless there is a bona fide stop along the way. Any reimbursements from your employer not included on your T4 slip must be deducted from the actual expenses before claiming.
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