Step 1: Track Each Vehicle Separately
Keep a logbook for both vehicles, recording business and personal kilometers driven
Record the date of the switch and the odometer reading when you changed vehicles
Step 2: Calculate Business Use for Each Vehicle
Determine the percentage of business use for each vehicle separately
Use the same method as a single-vehicle calculation but apply it individually to each car
Step 3: Record Vehicle Expenses Separately
Track gas, maintenance, insurance, and other expenses separately for each vehicle
If you financed or leased both vehicles, track loan interest or lease payments separately
Step 4: Capital Cost Allowance (CCA) Adjustments
If you bought a new vehicle, you’ll need to calculate CCA:
First Vehicle: Claim CCA for the portion of the year it was used
New Vehicle: Determine its value at the time of purchase and start a new CCA calculation
Step 5: Reporting on Your Tax Return
Use CloudTax to enter details for each vehicle
If you’re unsure how to allocate expenses, CloudTax makes it easy by guiding you through the process
Why This Matters
Tracking your vehicle changes properly ensures:
✅ Accurate tax deductions
✅ Proper business-use percentage calculations
✅ Compliance with CRA requirements
CloudTax simplifies the process, helping you maximize your deductions and file with confidence!