Trip Log
When any vehicle is used for both business and pleasure purposes, it is important to keep a Motor Vehicle – Trip log to identify the business use of each vehicle.
All government agencies including the Internal Revenue Service (IRS) , Canada Revenue Agency (CRA), and Revenu Quebec (MRQ) state that keeping an accurate logbook of business travel maintained for an entire year is the best evidence you can have to support your motor vehicle expense claims.
A separate Motor Vehicle – Trip log should be kept for each vehicle which is driven for both business and personal use.
For the self-employed only the business portion of vehicle expenses can be deducted from income. GST/HST input tax credits are also related to the business use of a vehicle. For businesses which provide vehicles to employees trip logs substantiate the business use of a vehicle. Businesses must calculate the taxable benefit to employees based on the personal use of the vehicle.
Trip log records
The Motor Vehicle – Trip log should record the date of each business trip, destination, reason for the trip, and the kilometres driven. The odometer reading of the vehicle must also be recorded, at the beginning and end of each year, to determine the total kilometres driven in the fiscal period.
If you buy, sell or trade your vehicle during the year, be sure to record the odometer reading at that time
Quebec Supporting Documents for Vehicle Mileage
Revenu Quebec’s Keeping Business Records information, supporting documents that must be retained regarding automobile mileage include:
| a statement of kilometres travelled for each vehicle used in part for business and in part for personal purposes documents substantiating trips. |
Quebec’s Logbook article also discusses the use of a simplified logbook for individuals in business.
Revenu Quebec’s Logbook information an employee who makes use of an employer’s automobile must keep a detailed logbook. This logbook details of the trips made with the automobile.
Employees must provide their employer a copy of the logbook:
- No later than January 10 of the year that follows the year
- The 10th day following the day on which the automobile is returned to the employer
Business Use vs Personal Use of a Vehicle
Canada Revenue Agency’s Logbook is similar to Revenu Quebec and also discusses the use of a simplified logbook for individuals in business.
(i) Employees
If an employee travels between home and work, the travel is normally considered personal use of the vehicle, unless there was a business matter attended to between the home and the place of work.
If an employee travels between (i.e., to and/or from) home and a customer’s place of work, the travel is normally considered business use.
For more information, see the CRA Interpretation Bulletin IT-522R Vehicle, Travel and Sales Expenses of Employees (Archived).
(ii) Self-Employed
If a self-employed person has a home office and another office or place of business, usually the office outside the home is considered the base of business. Travel between the home office and the base of business will normally be considered personal use of the vehicle.
Driving between (i.e., to and/or from) different premises of the same business would usually be considered business use.
Driving between the home office of a self-employed person and a customer’s place of work is considered business use, as is any other travel incurred for business purposes.
CRA Resources
IT-521R Motor vehicle expenses claimed by self-employed individuals (Archived)
Motor vehicle expenses – sole proprietorships and partnerships
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