How Do I Know if I need to keep a mileage log?

If you drive a vehicle for business purposes you need to have a mileage log to claim a tax deduction. Here is how to tell if you need to keep a mileage log:

  1. The vehicle is owned or leased by me.

    Are you being reimbursed by your company through a fixed or variable vehicle allowance?

    • Yes – Your vehicle allowance is a taxable benefit. You must keep a mileage log to claim back any taxes you are paying on your car allowance.
    • No – You qualify for a tax deduction on your vehicle expenses. You must keep a mileage log to claim your allocated vehicle expenses.
  2. The vehicle is owned or leased by my company.

    Is the vehicle used for personal purposes outside business hours?

    • Yes – You need to keep a mileage log to substantiate the use of the vehicle for business. Your employer may require you report the business and personal mileage each month.
    • No - you do not need to keep a mileage log
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