Simplified Travel Mileage Rates

by Anson
(Calgary, AB, Canada)

I am incorporated in Canada and am confused by the lack of information on the web for the simplified vehicle travel rates. I am glad I've found more information on this site.

However, I would like to clarify if there is any difference between the 2010 "Alberta rate of 51.5 cents per km" and the "52 cents for first 5,000 km and 46 cents for the remaining". Which one should I use?

Also, if I'm preparing T2 return for the year 2010-10-01 to 2011-09-30, should I use the 2010 or 2011 rates, if they were different?

Hi Anson,

If you go back and read the section on simplified travel rates, you will notice it is used for medical travel, moving expense travel or if you are eligible for the northern residents deductions.

You don't use the simplified travel rate for business use of your personal vehicle. Therefore, you need to use the employee auto allowance rates which represents the tax exempt portion. Any amount paid over that amount is a taxable benefit.

When you are incorporated, you will notice that you have another option. You can find your two choices by clicking here.

Lastly, you reimburse the rate appropriate for the date travelled in the calendar year. It is not based on a fiscal year. For example if your mileage related to 2010, you should be reimbursed using 2010 rates. If your mileage related to 2011 business trips, you submit your expense report to be reimbursed using 2011 rates.




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.