Interest expense

You can deduct interest you paid on money you borrowed to buy a motor vehicle, passenger vehicle, or zero-emission passenger vehicle that you use to earn employment income. Include the interest you paid when you calculate your allowable motor vehicle expenses.

If you use a passenger vehicle or a zero-emission passenger vehicle to earn employment income, there is a limit on the amount of interest you can deduct when buying it. Use the "Available interst expense for passenger vehicles or zero-emission passenger vehicles chart" to calculate the amount you can deduct.

Available interest expense for passenger vehicles or zero-emission passenger vehicles chart

Total interest paid in the year                                                $ ________ A 
$10 x the number of days for which interest was paid     $ ________ B

The available interest expense is the lower of Amount A and amount B.                                            

Completing your tax return

Enter your available interest expense amount on line 26 of Form T777, Statement of Employment Expenses.

Attach a copy of this form to your paper return.

Enter on line 22900, the allowable amount of your employment expenses from the total expenses line of Form T777.

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