Deductible expenses

The types of expenses you may be able to claim on line 9281 of Form T2125 or Form T2121, or line 9819 of Form T2042 include:

• licence and registration fees
• fuel and oil costs
• electricity costs for zero-emission vehicles
• insurance
• interest on money borrowed to buy a motor vehicle
• maintenance and repairs
• leasing costs

You can also claim capital cost allowance, but that amount is to be entered on line 9936, "Capital cost allowance (CCA)."

Joint ownership of a passenger vehicle or a zero-emission passenger vehicle

If you and another person own or lease a passenger vehicle or a zero-emission passenger vehicle, the limits on CCA, interest, and leasing costs still apply. The total amount you (as a joint owner) or any other owners deduct cannot be more than the amount one person owning or leasing the vehicle could deduct.

Forms and publications

• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Form T2125, Statement of Business or Professional Activities
• Form T2042, Statement of Farming Activities
• Form T2121, Statement of Fishing Activities
• Interpretation Bulletin IT-521, Motor Vehicle Expenses Claimed by Self-Employed Individuals

Related link

• Claiming capital cost allowance (CCA)