The Canada Revenue Agency, also referred to as CRA and the Canadian equivalent to the IRS, allows residents to deduct business mileage on a cost per kilometre basis. This is known as the CRA Mileage Rate or the Automobile Allowance Rate, and just as the U.S. Standard Mileage Rate, it is not a fixed value and can vary year to year.
The CRA Mileage Rate for 2022 has increased to the following:
If you live in BC whether you are an employee or self-employed, the CRA has rules in place which must be followed for your business mileage to be deducted on your tax return, and they are pretty strict on these rules, so let’s review.
The CRA recommends that every person or business attempting to deduct their allowance keep a detailed and accurate log of the business mileage they rack up. This is important, as there have been instances where the CRA has declined mileage logs due to incomplete or inaccurate information.
By using a mileage tracker app, such as MileCatcher, you can rest easy knowing your business mileage will be automatically recorded as you’re driving, and you’ll be able to download detailed reports when it’s time to prepare your taxes.
While taxes are never fun, MileCatcher Teams makes it less troublesome for businesses and employees. Take comfort in knowing that you’ll have detailed records and reports of all your deductible expenses, and even better, you’ll save a ton of time and have fewer headaches for when tax time rolls around.