Statistics indicate that automobile expense audits were a top audit activity of CRA in past years so this is an area you’ll want to pay some attention to if you are not already.
Without a mileage log, the CRA might not allow your vehicle expense claim!
You should be keeping a mileage log if:
- you are a sole proprietor and use your personal vehicle for your business
- you are an owner/employee of a corporation using a corporate owned vehicle for both business and personal use
- you are an owner of a corporation using a personal owned vehicle for business use
Your mileage log needs to have the following information for each trip:
- date of the trip
- destination
- purpose of the trip
- number of kilometers driven
You should also make sure you log the total kilometers on your vehicle at the beginning of the year and at the end of the year.
You can keep track of your mileage manually or digitally using apps such as QBO or MileIQ.
You can also download our Mileage Log Excel template.