MILEAGE TRAKKER

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It’s Your Business

You‘re here because you are a BUSINESS OWNER, always on the road, and you’re looking to decrease your tax burden and increase your profit.

If You Are An Incorporated Business Read Below

If You Are Self-Employed, Scroll Down to the Next Section

Ask us if you need to use the mileage rate or the percentage method.

Current CRA Mileage Rate:

$0.73/ km for the first 5,000 kms $0.67/km thereafter

The average person:

1) spends 80 hours trying to track their mileage accurately annually.

2) Still misses 30% of trips on average

80hr * $15/hr = $1,200 of your time, minimum

30% of 15,000 business mi = approx $3,000 in missed deductions

Let Mileage Trakker handle both your tracking and your paperwork, that’s the kind of money you will be making from your mileage (tax free!) Plus, we store your records for 7 years so you always have the proof to keep your deduction if you when you need it!

What’s your mileage worth to you?

Business kms Driven

30,000

X

$0.73*5000 + $0.67*25,000

=$20,400

in deductions

and 

$7,242

avg. in your pocket

Ask us if you need to use the mileage rate or the percentage method.

Self-Employed:

You must use the Expense Method

  1. Total all your vehicle expenses for the year (and that is more than just gas). Check our blog about current vehicle expenses that are deductible.

  2. You must keep a mileage log detailing ALL your trips—both business and personal in the RIGHT government compliant format, so you can prove what % of your trips are business trips. That’s where Mileage Trakker comes in. We do this log for you. (No, you are not allow to just “pick” a percentage to write off)

  3. Multiply your business % X your vehicle expenses. These are your operating costs.

  4. Calculate your Capital Cost Allowance (this is a complicated formula your tax preparer should have).

  5. Add your operating costs to your CCA and that is your total mileage deduction.

Let Mileage Trakker handle both your tracking and your paperwork, that’s the kind of money you will be making from your mileage (tax free!) Plus, we store your records for 7 years so you always have the proof to keep your deduction if you when you need it!

Here is an Example

In Ontario, the average cost of operating a vehicle is estimated to be between $11,000-$15,000/yr. Let’s say your business % was 65%. This would be approx. $7150 in deductions for operating expenses. Adding in a capital cost allowance of say $2,000 would make your total deduction $9,150 with $1900 avg tax savings.

Of course, if your percentage is higher, your vehicle expenses are higher or your capital cost allowance is higher, then your savings are even greater!

One method does not fit all in Canada! Right off the bat, it matters if you are self- employed or incorporated in determining which way you calculate your mileage deduction. So, one size does NOT fit all and we know that.

Remember: there are a lot of RULES about who can claim mileage and what records are REQUIRED. We don’t expect you to know them all – but we know them. That’s why when you register for Mileage Trakker, we will ask you some important questions AND you will be contacted by one of our representatives to confirm some of your answers and give you some tips based on your situation to maximize your mileage money!

Make Your Mileage Pay You!

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