2016-12-01 00:00:00TaxesEnglishLearn how to keep proper records and deduct mileage if you are a small business owner or freelancer.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Self-employed-professional-driving-car-with-smartphone-on-dash.jpghttps://quickbooks.intuit.com/ca/resources/taxes/how-to-deduct-mileage-if-you-are-self-employed/How to Deduct Mileage if You Are Self Employed

How to Deduct Mileage if You Are Self Employed

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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:

  1. The date
  2. The destination
  3. The purpose of the business trip
  4. 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.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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