Potential Tax deductions
When it comes to potential tax deductions, taxpayers end up leaving money on the table. A big culprit for missed deductions. Incomplete or messy mileage logs. You can deduct motor vehicle expenses only (Per Canada Revenue Agency) when they are reasonable, and you have receipts to support them. To get the full benefit of your claim for each vehicle, keep a record of the total kilometers you drive and the kilometers you drive to earn business income.
For each business trip, keep a log listing the following.
- date
- destination
- purpose
- number of kilometers you drive
Mileage Tracking feature
The Mileage Tracking feature in QuickBooks® Online makes it easier than ever to keep your records straight and help you get the deductions you deserve. Whether you enter trips manually or use the amazingly simple auto-tracking functionality, Mileage Tracking saves you the tedious work of staying on top of your driving — helping you focus on your work, your clients, and your business.
The biggest game-changer in the Mileage Tracking feature is its auto-tracking functionality. With the help of the QuickBooks mobile app, your phone can automatically detect and measure your trips using GPS.