Vehicle Travel Expenses for Sole Proprietor Canada
(Kitchener, ON Canada)
As a sole proprietor can I reimburse myself at the CRA perscribed per km rate for vehicle use instead of claiming a percentage of actual expenses for business use of vehicle?
And would that go on the line for "travel expenses"? or on the line for "motor vehicle expenses"? It would be a simpler method at year end.
Hi Rita, if you look at the quick reference drop down menu, you will see a tab for auto rate options. I run through all your options including what you can't do.
As a general rule, sole proprietors would not use employee auto allowances or non-business travel rates. CRA doesn't really care what is easier for you. They just enforce the ITA and ETA. Of course there can be differences of opinion on interpretation at times.
Don't forget you need an auto log to back up / support your business use.