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Kilometer Record Allowance Agreement

SKU: SF235vb

This document KM Allowance - is a written agreement in "word" detailing the km allowance to be paid to employees, management and/or shareholders. You only need to complete the agreed amount and both sign to complete. 

IF you are an employee the following information is valuable to you regarding vehicle expense claims:

You can deduct your motor vehicle expenses if you meet all of the following conditions:

1. You were normally required to work away from your employer's place of business or in different places.

2. Under your contract of employment, you had to pay your own motor vehicle expenses.

3. You did not receive a non-taxable allowance for motor vehicle expenses. Generally, an allowance is non-taxable when it is based solely on a reasonable per-kilometre rate.

4. You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.

The types of expenses you can deduct include:

fuel (gasoline, propane, oil);
maintenance and repairs;
license and registration fees;
capital cost allowance
eligible interest
you paid on a loan used to buy the motor vehicle;
eligible leasing costs.

Sometimes, your employer will include an unreasonably low allowance as income on your T4 slip even though you do not want to claim any expenses. When this happens, have your employer complete and sign Form T2200, or get a letter from your employer stating that the allowance was unreasonably low. On line 229, deduct as an expense an amount equal to the allowance.

If you use a motor vehicle for both employment and personal use, you can deduct only the percentage of expenses related to earning income. To support the amount you can deduct, keep a record of both the total kilometres you drove and the kilometres you drove to earn employment income. We consider driving back and forth between home and work as personal use.

If you use more than one motor vehicle to earn employment income, calculate each vehicle's expenses separately.

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