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Intuit

Mileage Allowance

Follow the steps below to calculate your mileage deduction using QuickBooks Self-Employed at the end of the tax year.

1. Make sure you enter your odometer reading on January 1 of the tax year. Then enter your odometer reading on December 31 of that same tax year. This is your total mileage for the tax year.

  • Make sure you categorize your trips as business and personal frequently.

  • Check the proportion of miles driven for business. We calculate it for you.

2. You divide the miles-driven-for-business by total-mileage (call it P).

Example:

Total: 10,000 kilometres
Driven for business: 5,000
Proportion: 50%

3. Now add up all your motor vehicle expenses for the tax year (call it M). If you stored your motor vehicle expenses in QuickBooks Self-Employed, you can pull them up by filtering.

Example M: $1000%

4. Now, to calculate your mileage deduction, multiply P * M.

Keep these guidelines in mind when tracking your mileage:

You can claim allowances for mileage tracking on up to 3 vehicles. The latest automobile allowance rates can be found on the Canada Revenue Agency website.