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Tax Features
Mileage Tracking

Track Vehicle Mileage for Tax Deductions

Overview

Track business mileage and maximize your vehicle expense deductions with Akili Apps. Learn CRA-compliant mileage tracking, standard rates, and how to maintain proper documentation.

What You'll Learn

  • CRA mileage deduction rules
  • Standard mileage rates vs. actual expenses
  • How to track mileage in Akili Apps
  • Required documentation
  • GPS auto-tracking features
  • Common mileage mistakes to avoid

CRA Mileage Deduction Rules

What Qualifies as Business Mileage?

Deductible:

  • ✅ Client meetings
  • ✅ Business errands (bank, supplies)
  • ✅ Site visits
  • ✅ Networking events
  • ✅ Professional development travel
  • ✅ Between multiple work locations

Not Deductible:

  • ❌ Commuting from home to regular workplace
  • ❌ Personal errands
  • ❌ Vacation travel
  • ❌ Social events (non-business)

Two Methods for Vehicle Deductions

Method 1: Standard Mileage Rate (Simplified)

  • Track kilometers driven for business
  • Multiply by CRA rate
  • No need to track every fuel receipt
  • Easier bookkeeping

CRA Rates (2025):

  • First 5,000 km: $0.68 per km
  • Over 5,000 km: $0.62 per km

Example:

6,000 km driven for business in 2025:
- First 5,000 km: 5,000 × $0.68 = $3,400
- Next 1,000 km: 1,000 × $0.62 = $620
- Total deduction: $4,020

Method 2: Actual Expenses

  • Track all vehicle costs
  • Deduct business-use percentage
  • More complex but may yield higher deduction

Costs included:

  • Fuel and oil
  • Insurance
  • License and registration
  • Maintenance and repairs
  • Lease payments or depreciation
  • Parking (business-related)

Example:

Total vehicle costs: $10,000/year
Business use: 60%
Deduction: $10,000 × 60% = $6,000

Which method to choose?

  • Standard rate: Simpler, good for moderate use
  • Actual expenses: Better for heavy business use or expensive vehicles
  • Can't switch methods mid-year
  • Consult accountant for your situation

Tracking Mileage in Akili Apps

Adding Mileage Manually

Method 1: Quick Add

  1. Click "+ New Expense"
  2. Select "Mileage" tab
  3. Enter trip details:
    • Date
    • From: Starting location
    • To: Destination
    • Distance: Kilometers (or auto-calculate)
    • Purpose: Business reason
  4. Rate auto-applied based on CRA guidelines
  5. Expense created with calculated amount

Method 2: From Calendar

  1. Navigate to Expenses > Mileage
  2. Calendar view of trips
  3. Click date to add trip
  4. Fill in details
  5. Save

Auto-Calculate Distance

Using address lookup:

  1. Enter "From" address (auto-complete)
  2. Enter "To" address (auto-complete)
  3. Click "Calculate Distance"
  4. Distance auto-populated using Google Maps
  5. Round trip option available

Example:

From: "123 Main St, Toronto, ON"
To: "456 King St, Toronto, ON"
Distance: 8.5 km (calculated)
Round trip: 17 km

GPS Auto-Tracking (Mobile App)

Professional and Growth plans:

Enable auto-tracking:

  1. Open mobile app
  2. Go to Settings > Mileage Tracking
  3. Toggle "Auto-Track Trips"
  4. Grant location permissions
  5. Select tracking mode:
    • Auto-detect: App detects when driving
    • Manual start/stop: You control tracking

How it works:

  1. App detects you're driving
  2. Records GPS route
  3. Trip saved when you stop
  4. Review and categorize:
    • Business
    • Personal
    • Mixed
  5. Business trips converted to expenses

Benefits:

  • Never forget to log trips
  • Accurate distance tracking
  • GPS route saved for verification
  • Less manual entry

Mileage Log View

View all trips:

  1. Expenses > Mileage Log
  2. See table of all trips:
    • Date
    • Route (from → to)
    • Distance
    • Purpose
    • Amount
    • Status (business/personal)
  3. Filter by date, status, or location
  4. Export for tax filing

Required Documentation

CRA Requirements

For mileage deductions, you must maintain:

Mileage Log:

  • ✅ Date of trip
  • ✅ Destination
  • ✅ Purpose of trip
  • ✅ Distance driven
  • ✅ Odometer readings (start/end of year)

Vehicle Information:

  • Make and model
  • Year purchased
  • Cost (if claiming depreciation)
  • Annual kilometers driven (total)
  • Business vs. personal percentage

Supporting Documents:

  • Insurance papers
  • Registration
  • Maintenance records (if claiming actual expenses)

Akili Apps Provides

Comprehensive mileage log:

  • All CRA-required fields
  • Automatic calculations
  • Exportable reports
  • GPS verification (if used)
  • Audit-ready documentation

Annual summary:

  • Total business kilometers
  • Total deduction claimed
  • Business use percentage
  • Month-by-month breakdown

Calculating Business-Use Percentage

Required if using actual expense method:

Tracking Total Kilometers

Start and end of year:

  1. Note odometer reading on Jan 1
  2. Note odometer reading on Dec 31
  3. Calculate: End - Start = Total km driven

Example:

Jan 1, 2025: Odometer 45,000 km
Dec 31, 2025: Odometer 60,000 km
Total driven in 2025: 15,000 km

Calculating Business Percentage

From your mileage log:

Business kilometers: 9,000 km
Total kilometers: 15,000 km
Business percentage: 9,000 ÷ 15,000 = 60%

Apply to expenses:

Annual vehicle costs: $8,000
Business deduction: $8,000 × 60% = $4,800

Mileage Reports

Generate Mileage Report

  1. Reports > Mileage Report
  2. Select period:
    • This month
    • This quarter
    • This year
    • Custom range
  3. Report includes:
    • Total business kilometers
    • Total deduction (at CRA rate)
    • Trip-by-trip details
    • Map of routes (if GPS tracked)
    • Business use percentage
  4. Export:
    • PDF for filing
    • Excel for analysis
    • CSV for accounting software

Monthly Reconciliation

Best practice: Review monthly

  1. Check all trips categorized correctly
  2. Verify distances are accurate
  3. Ensure business purposes documented
  4. Flag any questionable trips

Multi-Vehicle Tracking

For businesses with multiple vehicles:

  1. Settings > Vehicles
  2. Add each vehicle:
    • Make/model
    • License plate
    • Year
    • Primary driver
  3. Assign trips to specific vehicle
  4. Separate mileage logs per vehicle
  5. Individual deduction calculations

Tips & Best Practices

  • Track immediately - Log trips same day
  • Be specific with purpose - "Meeting with ABC Corp client" not just "meeting"
  • Use GPS tracking - Most accurate and audit-proof
  • Round trips - Don't forget return journey
  • Consistency - Track every business trip, not just some
  • Annual odometer readings - Required for CRA
  • Combine with expenses - Parking and tolls are separate deductions
  • Review quarterly - Catch errors early
  • Keep for 6 years - CRA requirement

Common Mistakes to Avoid

❌ Not tracking consistently:

  • Forgetting trips = lost deductions
  • CRA may question incomplete logs

❌ Claiming commuting:

  • Home to regular office is not deductible
  • Even if you're self-employed

❌ Vague purposes:

  • "Business" is not specific enough
  • Need client name or specific reason

❌ Guessing distances:

  • Use actual odometer or map tools
  • CRA wants accuracy

❌ Missing odometer readings:

  • Required for actual expense method
  • Record on January 1 and December 31

❌ Mixing methods mid-year:

  • Choose method for full year
  • Can't switch partway through

Common Questions

Q: Can I deduct mileage if I work from home? A: Yes, for business-related driving (client visits, errands, etc.). But not commuting to a regular workplace.

Q: What if I use my vehicle 100% for business? A: You can deduct 100% of vehicle expenses. But you'll need documentation proving no personal use.

Q: Can I deduct parking and tolls in addition to mileage? A: Yes! These are separate deductions, not included in the standard rate.

Q: What if I forgot to track for a few months? A: Reconstruct as best you can using calendar, emails, receipts. Better late than never, but consistent tracking is best.

Q: Do I need receipts for the mileage deduction? A: Not for the standard rate method—just your mileage log. For actual expenses, yes, you need all receipts.

Q: Can I claim both home office deduction and mileage? A: Yes! They're separate deductions. Common for home-based businesses.

Q: What's the penalty for inadequate mileage logs? A: CRA may disallow the deduction entirely if you can't provide proper documentation.

Q: Can I use last year's CRA rate? A: Use the rate for the tax year you're filing. Akili Apps automatically uses current rates.

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Need More Help?

Contact support at support@akiliapps.com or use the live chat in the bottom right corner of the app.

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