Is Mileage Logging for you?

If you use your vehicle to conduct business, you may be reimburesed by your employer for the use of your vehicle. But if you are not compesated for this expense, you qualify for a significant tax deduction. However, you can claim your vehicle business expenses only if you keep a mileage log that documents the use of your vehicle to conduct business.

Here is how to tell if you need to keep a mileage log:

1. Do you drive a vehicle for business?
   1. Yes – Who owns the vehicle?
      1. The vehicle is owned or leased by me. Are you being reimbursed by your company through a fixed or variable vehicle allowance?
         1. Yes – Your vehicle allowance is a taxable benefit. You must keep a mileage log to claim back any taxes you are paying on your car allowance. Click here for more information
         2. No – You qualify for a tax deduction for your vehicle expenses. You must keep a mileage log to claim your unreimbursed vehicle expenses. Click here for more information.
      2. The vehicle is owned or leased by my company. Is the vehicle used for personal purposes outside business hours?
         1. Yes – You need to keep a mileage log to substantiate the use of the vehicle for business. Your employer may require you report the business and personal mileage each month. Click here for more information.
         2. No - you do not need to keep a mileage log
   2. No – you do not need to keep a mileage log

How to get started

Tracking mileage is very simple but requires consistency and discipline. All you have to do is record details about each business trip in a log. Click here for a FREE mileage log you can get started with.

But, in reality, most people find it very hard to keep a mieage log manualy. There are several alternaives to make this task simple to do. Click here to learn more about different mileage logging alternatives.

Tax authorities are very clear on the details which must be captured in the log: the date, destination, distance traveled and the business purpose or activity of the trip. Please see our Tax Guidelines for more.