Last updated: April 02 2008

Auto Log Requirements Simplified but not Eliminated for 2009

Let's face it ... it's an impossible task for most business people ñ keeping the auto log to justify claims for auto expenses on the personal tax return.  The biggest audit trap for most employees, business owners and commissioned sales people who use their auto for both work and personal purposes may have become somewhat simpler, thanks to the February 26, 2008 federal budget.

Starting in 2009 (after ìconsultationsî with the business community that will begin in 2008), it is proposed CRA auditors accept a logbook for a sample period of time, rather than the whole year, to represent how the motor vehicle is used, and support motor vehicle expense claims and taxable benefit calculations.

In fact, most tax advisors in practice over the years know that CRA has accepted just such a sampling in their audit practices... nice to see it in print; however, to ensure consistent applications. 
 
So keep working daily on keeping the log, but if you "fall off the wagon", you don't need to feel quite as guilty!  
 
For more information about auto log and home office requirements, see Essential Tax Facts, and Make Sure It's Deductible, by Evelyn Jacks.