Reimbursement of Business Mileage

by Barbara
(South Surrey BC Canada)

I have just started running a small eBay business from home in Canada. I mail in the US.

Can I claim the 52 cents per km for my trips to mail my sales on my tax return?

Barbara,

Here's my understanding of how mileage works. There are four Canadian mileage rate options:

(1) If you are a sole proprietor ... and if it relates to your business and your pursuit of a reasonable expectation of profit, it is allowed .... but you must use the detailed vehicle travel method to make your claim.

Remember though ... you CANNOT claim mileage for driving to and from work.

(2) If you are an employee, you are eligible to use the employee auto allowance rates.

(3) If you are the owner/manager of a CCPC, you have two reimbursement options to choose from.

(4) The simplified vehicle travel method (the 52 cents per kilometre) can only be used for claiming medical expenses, moving expenses and northern resident deductions.

Hope this helps.




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