Rented Storage Unit

Driving To And From Storage Locker Containing Tools

Driving To And From Storage Locker Containing Tools

We have a small home based landscaping company. All our work is done in a city that is 45 km away. We rent a storage unit in that city where all the small tools & equipment are kept - rakes, shovels, ramps, tarps, hand mowers, garbage bags, weed eaters,etc.

All the large equipment - trucks, riding mowers, Rototiller, landscape trailers, containers of fuel (which are not allowed to be kept in the storage unit), etc is kept at the home property. Every day some of these have to be taken into the city where our work is done. One of our employees lives in our community and he uses a work vehicle which he takes in each morning and brings back to our property each day.

Is the trip from the home office to the storage unit a business expense?
Thank you.

section divider

Expenses are generally deductible if they are:

1. ordinary and necessary for your business/industry;
2. current (as in not a capital expense);
3. directly related to your business earning income and not personal in nature;
4. reasonable in amount for the circumstance;
5. you have original source documentation to support the expense (which in this example would be the storage locker rent and the auto log of the trips to and from the storage locker).

It is my understanding that acceptable to deduct a business trip from your home (if you have a home office and that is your principal place of business) to a temporary work location (i.e. your storage locker in this example).

As it sounds as if your employee is driving a company vehicle that is used 100% for business and parked at your principal place of business when not used for business, I'd be inclined to treat the trip to the storage locker as a deductible business trip.

However, if the employee is using their own vehicle and leaving from their own home to go to the job site, then I'd say the trip was not deductible as trips from an employee's home to the "office" (which in your situation would be the job site) are never deductible.

This is my opinion. You may want to use CRA's enquiries feature found under My Business Account for their opinion which is provided in writing.

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Home Business Taxes.

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Your Learning Curve!


Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is NOT associated with the business operating in Bonnyville AB.

A Handy Reference