Allowable Motor Vehicle Expenses

You can deduct expenses incurred to operate a motor vehicle in pursuit of earning employment income. The types of expenses you can deduct include:

  • fuel and oil;
  • maintenance and repairs;
  • insurance;
  • licence and registration fees;
  • capital cost allowance
  • eligible interest you paid on a loan used to buy the motor vehicle.
  • eligible leasing costs.

Use Form T777 to calculate this deduction.