Deducting Vehicle Expenses: How to Write Off Car Expenses for Business #taxdeductions #shorts

When it comes to claiming motor vehicle expenses for tax deductions in Canada, it's important to note that you should not claim 100% of your vehicle expenses for deduction as a self-employed individual. Doing so could raise red flags with the Canada Revenue Agency (CRA) and potentially lead to an audit. Instead, it's crucial to accurately calculate and claim only the portion of your vehicle expenses that are directly related to your business activities. In Canada, self-employed individuals, including gig workers like Uber and Lyft drivers, can deduct various vehicle expenses if they require a vehicle to earn income. These deductible expenses include items such as fuel and oil costs, insurance, maintenance and repairs, and leasing costs. However, it's essential to keep detailed records and supporting documents to substantiate your deductions in case of a CRA audit. To calculate the allowable amount of your vehicle expenses in Canada, you'll need to keep track of your business kilometers and total kilometers driven. Then, you can use this information to determine the portion of your expenses that can be deducted. Remember, accurate record-keeping and adherence to CRA guidelines are crucial when claiming vehicle expenses as a self-employed individual in Canada. By following these guidelines, you can ensure compliance with tax regulations and minimize the risk of audit-related issues. ---------------------------------------------------------------------------------- Save taxes by using Zoombooks, it's FREE... Zoombooks is an expense tracking and bookkeeping app for rideshare and delivery drivers (Uber, Uber eats, Doordash, Amazon etc). Don't miss a tax deduction ever again, use Zoombooks.app! Download FREE: https://linktr.ee/zoombooks.app ► Other videos about taxes for rideshare and delivery drivers that might interest you: How Uber Drivers are Taxed in Canada    • How to File Taxes for Uber Eats Drive...   Taxes for UberEats & Food Delivery Drivers    • ACCOUNTANT EXPLAINS: How to File Your...   Filing Your Skip The Dishes Taxes    • How to File Taxes for Skip The Dishes...   Tax Deductions for Instacart Canada    • How to File Taxes for Instacart Shopp...   If you want to learn more, you can check out these blogs: ✅ Tax Benefits to Leasing vs Buying a Car https://instaccountant.com/canada-fin... ✅ GST/HST Rules for Uber Drivers in Canada https://instaccountant.com/gsthst-can... I hope you find this helpful. Please like and subscribe for more videos like this. ---------------------------------------------------------------------------------- Connect with Murtaza Bhatti for a Free Consultation: 📞 Phone: +1 647-243-2884 📧 Email: [email protected] 🌐 Tax Services: https://instaccountant.com/tax-accoun... ----------------------------------------------------------------------------------- We provide a lot of free information on our social media platforms. 🐥 TWITTER/1instaccountant 📘 FACEBOOK/instaccountant.ca 📸 INSTAGRAM/instaccountant.ca 📌 PINTEREST/instaccountant.ca About the Publisher: Hello, my name is Murtaza and I'm an expert accountant who loves to make Canadian taxes easy. I have a strong passion for helping individuals in the delivery and rideshare industry, including Instacart, Skip The Dishes, DoodDash, UberEats, and other self-employed individuals. Don't miss this opportunity to get expert guidance from a Canadian accountant who understands the challenges and opportunities of the gig economy. Disclaimer: This video is for educational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a professional for personalized guidance tailored to your specific circumstances.