In Canada, if you are self-employed as a sole proprietor or in a partnership, you are allowed to deduct mileage driven. However, it is extremely important that a proper mileage logbook is maintained. For each business trip taken, four things must be recorded in the logbook:
- The date
- The destination
- The purpose of the business trip
- The number of kilometres driven
For tax year 2016, the allowances are:
*54 cents per kilometre for the first 5,000 kilometres driven*48 cents per kilometre driven after the first 5,000 kilometres
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4 cents per kilometre allowed for travel. The Canada Revenue Agency does not consider driving from home to an office as business mileage.