Mileage & vehicle deductions

For a lot of service businesses, vehicle costs are one of the biggest deductions on the table, and also one of the more commonly reviewed. GBooks Air's mileage tracker keeps the log the CRA expects, with the current per-kilometre rates built right in.

How the deduction actually works

The simple method here is the per-kilometre allowance: multiply your business kilometres by CRA's prescribed rate, which is higher for the first 5,000 km each year and lower after that. The current year's rates are baked into the app and applied on their own once your total climbs past the 5,000 km mark.

Logging a trip

Each entry records the date, distance, start and end points, and business purpose. That's not bureaucracy for its own sake — date, distance, destination, and purpose are exactly what the CRA asks for in a mileage log. An entry like "Mar 14 · 46 km · Office → client site (Brandon) · project kickoff" survives a review. "March: various trips, ~800 km" doesn't.

What counts as business driving

• Counts — client visits, supplier runs, trips between work sites, bank or post-office errands for the business, driving to a temporary work location.
• Doesn't count — the regular commute between home and your usual place of work. (If your home genuinely is your principal place of business, trips from home to clients generally do count.)

The running total and your books

The tracker shows your year-to-date kilometres and what that's worth at current rates, and the total feeds straight into your vehicle expense reporting. Since rates change every year, each year's kilometres get that year's rate applied — you don't have to remember what changed back in January.

Using the actual-cost method instead?

Businesses with heavy vehicle use sometimes deduct actual costs (fuel, insurance, maintenance, depreciation) prorated by business-use percentage instead. That still needs a kilometre log to establish the percentage, so the tracker matters either way. Which method actually suits you is a conversation worth having with your accountant — reach out to GSH Financial if you'd like to talk it through.