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.

AncientUserAuthor

I don't think this is correct. According to the CRA website: "To calculate meal and vehicle expenses, you may choose the detailed or simplified method. "

AncientUserAuthor

And the explanation of the Simplified Method is to maintain a logbook showing personal and business mileage and then charge a rate per kilometre based on your province of residence.

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.