Blog  |  Tax

If you claim vehicle expenses on your personal tax return, it is important to keep a mileage log.

A mileage log is a record of the distance you drive for business purposes, such as meeting clients, attending conferences, or delivering goods. A mileage log can help you claim deductions for your vehicle expenses on your income tax return, such as fuel, maintenance, insurance, and depreciation. A mileage log can also help you avoid penalties from the Canada Revenue Agency (CRA) if they audit your vehicle expenses. The CRA requires you to keep a detailed and accurate mileage log that shows the date, destination, purpose, and number of kilometres driven for each business trip, as well as the total kilometers that you have driven in the year. You should also keep receipts for your vehicle expenses and proof of ownership or lease agreement. A mileage log can save you money and hassle in the long run, so make sure you start one today and update it regularly.

To maintain a log you can use a notebook, calendar, or there are many apps available for download.

If you have any questions about claiming travel and vehicle costs, please speak to your accountant or see the CRA website for further details (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/motor-vehicle-expenses.html) .

If you moved to a new home in Canada for work or school, you may be able to claim some of your moving expenses as deductions on your personal income taxes. However, not all expenses are eligible, and there are some rules and limitations you need to know.

Eligible moving expenses include:

• Transportation and storage costs for your household items, such as furniture, appliances, and personal belongings.
• Travel expenses for you and your family members, such as airfare, car rental, gas, meals, and lodging.
• Temporary living expenses for up to 15 days near your old or new home, such as hotel, meals, and parking fees.
• Cost of cancelling a lease or selling your old home, such as legal fees, real estate commissions, mortgage penalties, and advertising fees.
• Cost of buying or renting a new home, such as legal fees, land transfer taxes, security deposits, and utility hook-ups.

There are some conditions and restrictions for claiming moving expense deductions:

• You must have moved at least 40 kilometers closer to your new work or school location.
• You can only deduct the amount of your moving expenses that is more than the net income you earned at your new location in the year of the move.
• You can only deduct eligible moving expenses from the income you earned at your new location. If you have income from other sources, such as investments or pensions, you cannot use it to reduce your moving expenses.
• You must keep all receipts and documents to support your claim. The Canada Revenue Agency may ask you to provide them if they review your tax return.

Moving to a new home can be stressful and costly, but you may be able to save some money by claiming moving expense deductions on your personal income taxes. If you need help with preparing your tax return or have any questions about moving expense deductions, please contact your accountant or visit the Canada Revenue Agency website (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses/line-21900-expenses-you-deduct.html) for more information.

If you have paid medical expenses for yourself or your dependents, you may be able to claim them on your personal tax return. However, not all medical expenses are eligible, and there are some rules to follow. Here are some tips on how to organize your medical expenses for claiming on your tax return.

1. You need to determine the total amount of eligible medical expenses that you paid in the tax year. Eligible medical expenses include payments to medical practitioners, dentists, nurses, pharmacists, and other health care providers, as well as prescription drugs, dental care, vision care, hearing aids, and more. You can find a complete list of eligible medical expenses on the Canada Revenue Agency (CRA) website. (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html#mdcl_xpns)
2. As part of preparing your personal tax return, the amount that you can claim as a tax credit will be calculated. The medical expense tax credit is a non-refundable tax credit that reduces your federal and provincial taxes payable. The amount of the credit is based on a percentage of your eligible medical expenses that exceed a certain threshold. For 2023, the threshold is the lesser of 3% of your net income or $2,635. You can claim the credit for yourself, your spouse or common-law partner, and your dependent children under 18 years of age. You can also claim the credit for certain other dependents, such as your parents, grandparents, siblings, aunts, uncles, nieces, or nephews, if they depended on you for support and their net income was below a certain amount.
3. Plan to keep all the receipts and documents that support your claim. You do not need to send them with your tax return, but you must keep them in case the CRA asks to see them later. You should also keep a record of the names and relationships of the persons for whom you paid medical expenses, and their net income if they are not your spouse or child.

Claiming medical expenses on your tax return can help you reduce your taxes payable. However, it can also be complicated and time-consuming. Please reach out to your accountant if you have further questions.