I live in Barrie, Ontario and work in Ajax. The drive is 130 kms one way – that’s 260 kms per day – 1300 kms/week and 5200 kms/month. I keep all my gas, maintenance and car insurance receipts. Should I claim the mileage rate or the exact amount of my expenses per year? Can I expense both? Also, I will be moving to Oshawa in the next four months. What expenses can I write off with the sale of my home and moving expenses that will reduce my drive to 40 kms per day?

B.B.W.

Hi. Thanks for writing. The travel from your home to work is not deductible as it is considered a personal expense. For the moving expenses, it depends on whether this is a new job for the expenses to be deductible. If you are just moving closer to your current office, the moving expenses are not deductible. However, if you are moving to a new office (within your company) or for a new job, then the moving expenses become deductible.

My employer pays for my personal vehicle including loan payment/gas/maintenance. The vehicle is in my name and is used for business and personal use (approximately 80/20). Can I write off vehicle depreciation or anything else on my tax return?

My employer adds this as income to my taxable income on my T4; as this my personal vehicle used for both business and personal use, should the entire loan payment amount be added as income?

S.B.

Yes, if the reimbursement is added to your income, then the allowance you are getting is considered unreasonable (which is why it is taxable). If it is not to be taxable, the reimbursement would have to be based on a per km usage of your car. You can deduct all expenses of the car using the form T777 Employment Expenses, and you will need to get the form T2202 (Conditions of Employment) signed by your employer so that you are able to claim your auto expenses. Auto expenses include: gas, maintenance, insurance, parking, license plate and drivers license payments, depreciation, interest on car loan, or lease payments.