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.

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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.

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

Comments for Minimum Mileage Claim %

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Dec 21, 2010
by: Sherrill

Thanks. You're the greatest.

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