Travel expenses and motor vehicle costs

In order for an employee to deduct these expenses, the employee must meet the following:

  • Employee must be required to pay his own travel and motor vehicle costs and must have form T2200 signed by the employer to certify that this is the case
  • The person must be ordinarily required to carry on his duties away from the employer’s place of business
  • The person must not be in receipt of an allowance for travel costs that was not included in income

Items that can be deducted include accommodation, airline or rail tickets, taxi fares and meals. In terms of meals, only 50% of the cost can be deducted. Motor vehicle cost can also be deducted when an employee uses his own vehicle to carry out employment duties. There are no limitations for these deductions compared to the salesperson deduction which was limited by the commission.

Note that a salesperson can also claim these expenses for deductions. However, if he claims these expenses then he is not eligible to claim for salesperson expense deductions.

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