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You can deduct interest on money you borrow to buy a motor vehicle, zero-emission vehicle, passenger vehicle, or zero-emission passenger vehicle you use to earn business income. Include this interest as an expense when you calculate your allowable motor vehicle expenses.
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.
13 maj 2024 · Calculate your mileage reimbursement by multiplying your business-related kilometres with the CRA mileage rate for 2024 - 70 cents for the first 5,000 km. After 5,000 km, the rate decreases to 64 cents per kilometre.
19 gru 2023 · Calculating your total mileage deduction from here is simple: Multiply your car-related expenses by the share of business kilometres. For example, if you had $500 of expenses, multiply that by the share of business kilometres (0.5) - the vehicle expenses you can deduct are $250.
If your business uses a vehicle to earn business income, you can deduct some or all of the related vehicle expenses. Entrepreneurs frequently ask us what the best way is to write off automobile expenses in their companies.
6 cze 2024 · CRA mileage calculator. Enter your driving below to estimate the reimbursement or CRA deduction you are entitled to for your business kilometres. Select rate. 2024 CRA rates. How many kilometres did you drive for work? km. Apply the additional 4¢ per km allowed in the Northwest Territories, Yukon, and Nunavut. 70¢ per km (first 5,000 km) $ 0.00.
25 wrz 2020 · Total kilometres you drove for business purposes. Once you have these two numbers, you simply plug them into the CRA formula for calculating your mileage deduction. You can deduct the full amount of allowable expenses for the car (for the portion of time you used the vehicle for business purposes).
