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Automobile Expense Deduction

(1) Who is eligible

(2) Limits and Rates for 2000

(3) Deductible Expenses

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Tax Tips - October 30, 2000

Automobile Expenses Deduction (3) - Deductible Expenses
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You can deduct expenses you incur to run a motor vehicle that you use to earn business income, and 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 kilometres you drove, and the kilometres you drove to earn business income. Also make sure you write down the dates.

The types of expenses you can deduct include:

	fuel and oil;
	Maintenance and repairs;
	insurance;
	licence and registration fees;
	capital cost allowance;
	interest you pay on a loan used to buy the motor vehicle; and
	leasing costs.