Self-employment - Expenses for leased motor
vehicle
We assume that you have already completed the first two
subsections under "Self-employment income" and that you now
want to complete the "Motor vehicle expenses"
subsection.
1 - On the "Left side menu of the Interview tab",
under "Self-employment income", choose "Motor vehicle
expenses" and on the screen to your right, select "Leased
passenger vehicle".
2 - On the first part of the "Leased passenger vehicle"
page, enter the information about your vehicle and the "Level at
which the expense is claimed". Make sure that the total
distance travelled during the year as well as the distance
travelled specifically for business purposes are entered
correctly;
3 - In the section "Motor vehicle expenses incurred" of this
page, enter the expenses incurred for the vehicle in the taxation
year;
4 - On the third (3rd) section, enter the relevant information;
4.1 - On the line "Total leases charges in
the current year", enter the rent amount for the taxation year
including taxes;
4.2 - On the line "Lease payments already
deducted in prior years", enter the total amount you claimed
for this vehicle before the current tax year;
4.3 - On the line "Beginning of leasing
contract (dd-mm-yyyy)", enter the beginning date of the
rental;
4.4 - On the line "End of leasing contract
(dd-mm-yyyy)", enter the ending date of the lease;
4.5 - On the line "Manufacturer's suggested
retail price", enter the vehicle's retail price without
taxes.
We recommend that you keep a record of all expenses and a daily
mileage log.
For more information on vehicle expenses, see the following
link:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses.html
The program will transfer the amount on line 9281 of the
federal form T2125 as well as line 220 of Quebec's TP-80. In
addition, on page 7 you will have the details of the
expenses relating to the vehicles.
ID: 20211005153745DE.xml
Webpage: KPA320-20211005153745DE.htm
