Who this is for
Realtors, trades, delivery and gig drivers, consultants who visit clients, and owner-managed corporations with a company vehicle. The records are the same whether you deduct the costs personally or through a company.
The seven records
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A trip log. For each business trip: the date, the destination, the purpose and the kilometres. A notebook in the glovebox works. So does an app. What does not work is reconstructing a year from memory in April.
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Odometer readings at the start and end of the year. Two numbers. They give total kilometres, and your business trips divided by that total is your business percentage.
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Fuel receipts. Card statements show the amount but not always the litres or the station. Keep the receipts or the monthly statement from a fuel card.
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Insurance, licence and registration. The annual insurance papers and the ICBC renewal. Only the business share is deductible, but the whole document is the record.
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Repairs, maintenance and tires. Every invoice, with the vehicle identified.
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Loan or lease statements. Interest on a loan and lease payments are claimed within limits the CRA sets. The statement shows the figures.
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Purchase, sale or trade documents. The bill of sale with the date and price, and the same when you sell or trade. These decide the depreciation claim and any recapture when the vehicle goes.
The three-month shortcut
Keep a full logbook for one complete year. That becomes your base year. In later years you can keep a log for one three-month period and use it to work out the year. Two conditions. The sample’s business use is within ten percentage points of the base year. The base year still reflects how you use the vehicle. Keep the base-year logbook for six years after the last year you relied on it.
One thing many people do not realize
You do not have to keep a full logbook forever. The CRA accepts a three-month sample in later years. The conditions: you kept a full logbook for one complete base year, and the sample stays within ten percentage points of that year’s business use. One careful year earns you a lighter routine afterwards.
What to prepare
- Your trip log, or whatever you have
- Odometer readings for January 1 and December 31
- Receipts for fuel, insurance, repairs, parking and tolls
- Loan or lease statements
- The purchase document if you bought the vehicle in the year
When professional help may make sense
A vehicle owned by your corporation but used personally. More than one vehicle. Claims made for years without a log. In each case the right fix depends on the facts. A missing log is one of the most common reasons a vehicle claim is reduced in a CRA review.
How Rex Tax may be able to help
We prepare the vehicle claim with your return or your corporate books. We work out the business percentage from your records and set up a simple log you will actually keep.
Official sources
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.