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  (519) 763-2268

  (519) 843-1050

Guelph Office: 30 Norwich Street East - Guelph, ON - N1H 2G6

Fergus Office: 265 Bridge Street, Unit #3 - Fergus, ON - N1M 1T7

Everything to Know About Vehicle Expenses for the Unincorporated Realtor

If there is one thing we know to be true about every single realtor is that you drive A LOT!  Because of this we need to make sure you are taking advantage of every vehicle deduction available to you.

1. Do I need to track mileage?

Absolutely! This is one of the most important things you need to be doing.  The amount of your tax deduction each year is based on the total amount of business km’s you are driving.  Typically we see 90% or more of your vehicle being used for business purposes.  Since we also know your phone is your life line we recommend downloading a mileage tracking app for this.  Most of our Realtors are using MileIQ. It is simple to use, swipe one way for business and the other way for personal.  It will then give you an annual report for deducting your vehicle expenses and provides enough support should CRA want to verify your expenses.

2. What can I claim?

It is important to keep copies all your receipts that pertain to your vehicle.  Here is a list of the most common expenses we see:

  • Fuel
  • Insurance
  • Repairs
  • Oil changes
  • Car washes
  • License fees
  • Tires
  • Windshield wiper replacements
  • Interior detailing

3. To lease or to buy?

This is the most common question we are asked and we have a great answer:  It depends!  Wasn’t that helpful?  Why we say “it depends” as our answer is determined by your specific situation.  First we always look at what is better from a cash flow perspective.  Sometimes there are killer financing deals and sometimes the leasing rates can’t be beat.  When buying you only get CCA (depreciation) on the first $30,000 of the price of the vehicle.  When leasing you can only claim a lease payment of $800/month ($900 for vehicle leased in 2022) up to $30,000 in total monthly lease payments for the vehicle.  Since realtors drive so much we find that you often get a new vehicle every two or three years.  If this sounds like you it may be more beneficial to lease.