Employment expenses - Leased motor vehicle
expenses
You can deduct expenses you paid to operate a motor vehicle you
use to earn employment income.
We assume that you have already completed the "Employment
expenses" page and that you now want to complete the "Motor
vehicle expenses" subsection.
1. On the "Left side menu on the Interview tab", in
the "Employment expenses" section, choose the "Motor
vehicle expenses" subsection and in the page to your right,
click
on plus sign "+" icon
located to the right of the line "Leased passenger
vehicle".
2. On the first part of the "Leased passenger
vehicle" page, enter the information about your vehicle.
3. For the "Manufacturer's suggested retail price" line,
please indicate the vehicle's retail price excluding
taxes, as well as the dates of the start and end of the
lease, this information is mandatory.
4. For the line "Total lease charges in the current
year", enter the total amount of the rental charge for the
taxation year, including taxes.
5. For the line "Lease payments already deducted in prior
years", enter the total amount you claimed for this vehicle
before the current tax year;
6. To determine the part of the expenses applicable to
your employment, enter the "Kilometres travelled for business or
work" and the "Total kilometres travelled" throughout
the tax year.
7. In the "Motor vehicle expenses" section, enter the
expenses incurred for the vehicle.
8. If you received an allowance for vehicle expenses, during the
tax year, go to the line "Allowance received for motor vehicle
expenses (excl. CCA & interest)", and enter the amount
received.
NOTE: We recommend that you keep a record of all expenses
and a daily mileage log of your vehicle.
For more information on employment expenses, please visit the
following links:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses.html
For Quebec residents, please visit the following links:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-118-v/
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-207/
The program will transfer the amount for the vehicle
expenses on line 9281 of the federal form
T777 and for Quebec residents on line 5
of Form TP-59.
The amount for your employment expenses will be
reported on line 22900 of the federal
return and for Quebec residents to line 207 of the Quebec
return.
ID: 20201021105122NA.xml
Webpage: KPA350-20201021105122NA.htm
