Question

Automobile Expenses Using Simplified Method

Forum|Forum|2 years ago
March 16, 2024
2 replies
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I am self-employed and have maintained a mileage log. I want to use the Simplified Method to enter my automobile expenses (e.g 3000 km @ 59 cents/km). How do I do this or where do I enter it? The form T777 has lines for detailed types of expenses but has no where to enter kilometres and a rate. How do I do this? Thanks for any help anyone can provide.

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TurboTaxSusan

There is no “flat rate” calculation method for business, employment or rental related automobile expenses. To claim those expenses, you must have receipts with the actual costs, as well as a log book that records your business kilometers traveled. The simplified way to do a logbook only determines your business use of the vehicle.

R

ranaanuj052

As per CRA website (link below), one can choose simplified method. I also want to use this method but I don't see an option for it in turbotax.

Meal and vehicle rates used to calculate travel expenses for 2023 - Canada.ca

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AGA Tax Solutions

@ranaanuj052

The flat rate mentioned in the link that you have posted is for Northern Residents Deductions

Or the other flat rate charges mentioned by CRA are for deductions by the employer and paid tax-free to employees or officers as reimbursement for motor vehicle expenses incurred while travelling for business purposes, using their personal vehicle.

Self Employed individuals must keep all their receipts. They can use the detailed log book or the simplified log book but not flat rate.

TurboTaxSusan

The simplified method is for the log book, not for claiming the expenses. The T777 and T2125 still require you to enter actual expenses, and the CRA still requires you to have (and keep) your receipts for those expenses.