Tax Tip: Are Car Repairs Tax Deductible?

Overview

The Canada Revenue Agency (CRA) has fixed criteria when it comes to deducting employment or business vehicle expenses on your tax return. If you’re eligible, car repairs and maintenance can be deducted, as can gas and insurance. If you use your car partially for personal use, you need to track your mileage to determine the percentage of vehicle expenses that can be deducted for business. Vehicle expenses can only be claimed if you have a signed T2200 from your employer, and if you’re required to work away from your employer’s place of business.