How to Deduct Mileage if You Are Self Employed

by Craig Anthony

0 min read

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.

References & Resources

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