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Level 1
April 21, 2021
Question

Inputting Simplified Auto Expenses for Rental/Self employed business

  • April 21, 2021
  • 1 reply
  • 6 views

Does anyone know how to input Simplified Auto expenses on the T776 or T2125? I'm trying to just input the allowable milage rate from the CRA (0.55/km in ontario) X # of KM driven? 

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1 reply

Level 7
April 22, 2021

There is no such thing as simplified auto expenses for rental/self employed business.  Only for moving and medical.  For rental or business, you can only claim a prorated portion of your actual vehicle expenses based upon business mileage prorated by total mileage.  A log is required. That being said, for rental (if they are travelling to the property to conduct their own repairs an otherwise qualify for travel) and if it is small distances (like travel to a dump on a weekly basis or something), I have been known to apply a per/KM rate, usually using a slightly lower rate than allowed for medical/moving.