If You Use Your Car for Both Business and Pleasure

question 177

Short Answer

If you use your car for both business and pleasure, the Canada Revenue Agency will usually allow you to report a portion of the costs of operating the vehicle as a business expense. This portion is determined by the ratio of the distance travelled on business to the total distance travelled in the year.
Last year, Harjap spent a total of $11,348 on gasoline, oil, repairs and maintenance, and insurance. His travel log shows that he drove 14,488 km on business and 8,329 km on personal use. What vehicle expense can Harjap report for the year?

---

Definitions:

Price Expectations

Anticipations or forecasts by consumers and businesses about future prices, which can influence their current buying and selling decisions.

Short-run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short time period, taking into consideration the price levels of the market.

Production Costs

The expenses incurred in the manufacture of a product, including raw materials, labor, and overheads.

Prices

The financial sum anticipated, obligatory, or presented in exchange for an item.