Minimum Mileage Claim %

by Sherrill

Sole Proprietor business: I input my Kms driven in the year to earn business income & the total kms driven in the year. The percentage for business useage was 9.8%.

Does CRA have a minimum percentage threshold I have to be over before I can claim the business mileage on my T2125 form? ie: is a % under 10% allowed.

Hi Sherrill,

There is no minimum claim requirement for business use of your personal vehicle. Just be sure you keep your log and have all supporting vehicle receipts.

You can deduct 100% of parking fees incurred for business and any supplementary business insurance you purchased for your vehicle.

There is, however, a restriction on claiming inputs tax credits (ITCs) for your vehicle if business use is less than 10%.

You are not eligible to claim ITCs when business use is under 10%.

Edited for clarification: The ITC restriction is for GST/HST on the vehicle (the asset) itself. You can still claim ITCs on the operating expenses of your vehicle.



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