# Calculating motor vehicle expenses

If you use a motor vehicle or a passenger vehicle for business and personal use, you can deduct only the part of the expenses that you paid to earn income. To support the amount you can deduct, keep a record of the total kilometres you drive and the kilometres you drive to earn income.

### Note

You can deduct the full amount of parking fees related to your business activities and supplementary business insurance for your motor vehicle or passenger vehicle.

### Example

Danielle owns a hardware store that has a December 31 year-end. She has a van that she uses for the business.

Danielle noted the following for the tax year:

Kilometres driven to earn business income = 27,000
Total kilometres driven = 30,000

Expenses:
Licence and registration fees = \$100
Gas and oil = \$2,400
Insurance = \$1,900
Interest = \$800
Maintenance and repairs = \$200

Total expenses for the van = \$5,400

Danielle calculates the expenses she can deduct for her van for the tax year as follows:

27,000 business kilometres ÷ 30,000 total kilometres × \$5,400 = \$4,860

The deductible business part of Danielle's van expenses is \$4,860.

She also has business parking fees of \$40 and a supplementary business insurance cost of \$100. Therefore, she can claim \$5,000.

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