What kind of vehicle do you own?

For tax purposes, there are two types of vehicles you should know about. They are motor vehicles and passenger vehicles (or zero-emission passenger vehicles).

The kind of vehicle you use may affect the expenses you can deduct. If you own or lease a passenger vehicle or a zero-emission passenger vehicle, there may be a limit on the amounts you can deduct for capital cost allowance (CCA), interest, and leasing costs.  

Motor vehicle

A motor vehicle is an automotive vehicle designed or adapted for use on highways and streets. It is not a trolley bus, or a vehicle designed or adapted to be operated exclusively on rails.

Passenger vehicle

A passenger vehicle is a motor vehicle (other than a zero-emission vehicle) designed or adapted primarily to carry people on highways and streets. It seats a driver and no more than eight passengers. Most cars, station wagons, vans, and some pick-up trucks are passenger vehicles. They are subject to the limits for capital cost allowance (CCA), interest, and leasing costs.

A passenger vehicle does not include:

The Vehicle definitions chart should help you determine what type of vehicle you have. It does not cover every situation, but it should give you a better idea of how the CRA defines vehicles you bought or leased.

Zero-emission passenger vehicle (ZEPV)

A ZEPV means an automobile of a taxpayer that is included in Class 54. The following are special rules applicable to a ZEPV:

For more information, see Classes of depreciable properties, Leasing costs, and Interest expense.

Completing your tax return

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

Forms and publications

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