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