# TAX-07 — Vehicle logbook

**Flag: Current** — Verified against the live source. Safe to cite.

**Vehicle logbook:** business kilometres ÷ total kilometres × total vehicle expenses. Business parking and supplementary business insurance are 100% deductible. Full-year log per business trip showing date, destination, purpose and kilometres, plus opening and closing odometer readings. Simplified method: after one full base year, a three-month sample may project annual business use, valid only while the result stays within 10% of the base year. Keep the 12-month base logbook six years from the end of the last tax year it is used for. Separate records per vehicle

## Sources

- Motor vehicle records (primary): https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses/motor-vehicle-records.html
- https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html (mirror): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative