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One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Terms of Service
Welcome to Castle! These terms of service outline the rules and regulations for the use of our bookkeeping services.
By accessing this website and using our services, you accept these terms and conditions in full. Do not continue to use Castle services if you do not accept all of the terms and conditions stated on this page.
Castle offers professional bookkeeping services including transaction categorization, reconciliations, financial reporting, GST/HST filing, and other related services as agreed upon with the client.
2. Billing and Payments
All services provided by Castle are billed on a recurring basis unless otherwise
agreed upon. Payments are due upon receipt of invoice. We accept payment via credit card, debit card, and electronic funds transfer.
3. Cancellation and Refund Policy
Clients may cancel services at any time by providing 30 days’ notice in writing or via email. Refunds for prepaid services will be prorated based on the remaining unused portion of the services.
4. Privacy Policy
Our privacy policy outlines how we collect, use, and protect your personal information. We do not sell or share your information with third parties without your consent, except as required by law.
5. Liability
Castle will perform all services with reasonable care and skill. However, we do not accept liability for losses resulting from acts of nature, third-party errors, or misuse of financial information or reports by the client.
6. Amendments
Castle reserves the right to amend these terms of service at any time. Amendments will be effective immediately upon posting on this website.
7. Contact Us
If you have any questions about this privacy policy or our privacy practices, please contact us at:
Castle
316 1st Ave NE
Phone: 587-872-0602
Email: info@bookwithcastle.com
One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Vehicle Expenses — What You Can Actually Write Off in Canada
For many Canadian business owners, the vehicle is one of the biggest and most confusing expense categories. The CRA has specific rules, percentages, and documentation requirements — and following them properly can save you hundreds (or thousands) every year.
Let’s break down exactly what counts, how much you can claim, and the mistakes to avoid.
1. You Can Only Deduct the Business Portion
The CRA is crystal-clear on this:
You must separate business vs. personal use, and you can only claim the business percentage.
Examples of business use:
- Driving to client meetings
- Picking up supplies
- Traveling to job sites
- Banking and mail runs
- Deliveries
Examples not considered business use:
- Driving from home to your regular workplace
- Personal errands
- Family trips
Your business-use percentage is:
Business km ÷ Total km × 100%
You need a mileage log or a reliable mileage-tracking app. If you’re audited, the CRA can deny vehicle expenses entirely without this.
2. What You Can Write Off (Full List)
You can claim the business-use percentage of:
- Fuel
- Oil & fluids
- Repairs and maintenance
- Tires
- Insurance
- Registration
- Auto club fees (e.g., AMA)
- Parking
- Interest on a car loan (limits apply)
- Leasing costs (limits apply)
- Washes & detailing
- Depreciation (CCA)
3. Vehicle Lease vs. Vehicle Purchase
If You Lease the Vehicle
You can claim a portion of your lease payments, up to a CRA monthly limit.
Leases are good for:
- Lower monthly costs
- Newer vehicles
- Simpler bookkeeping
- Higher business-use percentages
If You Purchase the Vehicle
You claim depreciation through CCA (Capital Cost Allowance).
Most passenger vehicles fall under Class 10 or Class 10.1.
Luxury vehicles ($30k+) have stricter limits.
4. Parking vs. Fines
- Parking for business purposes → deductible
- Parking tickets or speeding tickets → never deductible
5. When You Can Use the “Simplified” Method
Some sole proprietors prefer to write off per-kilometre using CRA’s cents-per-km rate.
But this method is only valid when reimbursing employees — not for your own business.
So for your own business, you must track:
- Mileage, and
- Actual vehicle expenses
6. Documentation Required
To be fully CRA-compliant, you need:
Required
- Mileage log showing date, destination, purpose, and km
- Receipts for every vehicle-related purchase
- Proof of payment (bank/credit card transactions)
- Yearly odometer readings (Jan 1 and Dec 31)
Nice to Have (Helps in Audits)
- Photos of odometer
- Maintenance record logs
- Monthly mileage summaries
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