Day to Day Operations of a Business: Vehicle Operations

Most businesses may require a vehicle to travel back and forth from offices, pick up supplies meet with clients and other business related activities. Vehicle expenses are a typical deduction for most businesses.

Remember, you can only deduct motor vehicle expenses when they are reasonable and you have receipts to support them.

So what records do you need to be able to claim the vehicle expenses? You will need to keep a record of the total kilometers you drive and the kilometers you drive to earn income for each vehicle. And for each trip, you will need to list down the date, destination, purpose and number of kilometers you drive. Do not forget to record the odometer reading of each vehicle at the start and end of the fiscal period.

You can choose to maintain one complete year of keeping a logbook to establish your base year. You will have to show that the use of the vehicle in the base year remains representative of its normal use.
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Day to Day Operations of a Business: Record Keepi...

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