Separate business and personal vehicle use by keeping total kilometres for the vehicle and a detailed log of the kilometres driven to earn business income. Do not label every kilometre as business simply because the vehicle is owned, leased or often used by the Business.

SilaTrail records the facts you enter. It does not decide whether a trip qualifies, calculate a deductible percentage or make an accounting or tax determination.

Start with the whole vehicle year

Record the opening and closing odometer readings for the fiscal period. The difference establishes the vehicle’s total distance. If the vehicle enters or leaves service during the year, use the actual service dates and readings.

For each business trip, record the date, destination, purpose and kilometres. The sum of those supported trips forms the business-distance side of the record. The remaining distance is not automatically an error; it may represent personal or other non-business use.

Classify trips using purpose, not convenience

A trip needs a genuine connection to earning business income. Write a purpose note specific enough for review. Do not convert a personal trip into business travel because a business errand was discussed during the drive.

Travel between home and a regular place of work can raise fact-specific questions. The CRA’s employee guidance treats ordinary commuting as personal, while self-employed situations can depend on the facts. When the classification is uncertain, preserve the details and ask a qualified professional.

Keep expenses and trips distinct

Fuel, maintenance, insurance and registration receipts support operating costs. They do not identify which kilometres were business. Likewise, the trip log supports business distance but does not replace receipts for costs.

A practical review package contains:

• opening and closing odometer readings;
• total and business kilometres;
• the detailed business-trip log;
• receipts for vehicle costs; and
• notes for changes, gaps or unusual events.

Check the business-use ratio

A reviewer may compare business kilometres with total kilometres. Treat that percentage as an output of supported records, not a target to reach. Never add trips or change distances to produce a preferred result.

Frequently asked questions

Can I record only business trips?

You can log business trips individually, but you still need reliable total kilometres for the vehicle to distinguish business use from personal use.

Is fuel for a business trip automatically fully deductible?

Vehicle-expense calculations depend on your circumstances and the applicable rules. Keep the receipt and trip record, then obtain professional guidance.

What if one trip has both personal and business stops?

Record the route and purposes accurately. Do not guess at the business portion; ask a professional when the distinction is not clear.

Continue the workflow

Explore SilaTrail’s mileage and fuel tools, monthly review and accountant-ready records.

For authoritative information, see the CRA’s Motor vehicle records and calculating motor vehicle expenses.