How Canadian Real Estate Investors Can Deduct Vehicle Expenses

Canadian Real Estate Investing Morning Show, hosted by Canadian real estate investing coaches Wayne & Gabby Hillier. Can Canadian landlords and real estate investors deduct vehicle expenses? In this full episode, Wayne and Gabby are joined by investor-focused accountant Steve Tsonev from Finngo Bookkeeping & Tax to explain how mileage, vehicle expenses and business-use deductions work for Canadian real estate investors. Steve explains why the rules may differ depending on whether you own one rental property or multiple properties. If you own only one rental property, vehicle deductions may be more limited. The property may need to be in the same general area where you live, and the trip may need to involve completing a necessary repair or maintenance task while transporting the required tools or materials. Simply driving to one rental property for a showing, lease signature, inspection or rent increase may not qualify in the same way. When an investor owns two or more rental properties, the range of deductible travel may expand. Trips may include: • Supervising contractors • Managing rental properties • Completing showings • Serving notices • Signing documents • Collecting rent • Completing repairs and maintenance • Travelling between business locations The key is that the expense must be reasonable, legitimate and directly connected to earning rental income. Steve also explains the difference between using a personally owned vehicle and owning a vehicle through a corporation. When a vehicle has both personal and business use, owning it personally and receiving a reasonable kilometre reimbursement is often the simplest option. If a corporation owns the vehicle and it is also used personally, the personal use may create a taxable benefit that needs to be calculated and reported. The episode also compares: • Tracking actual fuel, insurance, repairs and maintenance • Claiming a reasonable per-kilometre allowance • Purchasing versus leasing • Personal ownership versus corporate ownership • Business travel versus personal commuting • One rental property versus multiple properties Steve explains why buying a luxury vehicle through a corporation does not create an unlimited tax deduction. CRA limits may apply to depreciation and other vehicle costs. You will also learn about mileage-tracking apps, including: • MileIQ • QuickBooks Online • Dext This episode is for Canadian landlords, Realtors, property managers and real estate investors who want to understand vehicle deductions without guessing or relying on random online advice. Tax treatment depends on the facts of each situation. Speak directly with an investor-focused accountant before making important tax decisions. UPCOMING EVENTS Edmonton Garden Suites 101 Saturday, July 25, 2026 2:00 PM to 5:00 PM Edmonton, Alberta [www.reimasters.ca/edmontongardensuites101](http://www.reimasters.ca/edmontongard...) REI Masters Edmonton Real Estate Investing Bus Tour August 22, 2026 [www.reimasters.ca/edmontonbustour](http://www.reimasters.ca/edmontonbustour) WANT HELP BUILDING YOUR RENTAL PORTFOLIO? Learn about the REI Masters Mentorship Program: [www.reimasters.ca](http://www.reimasters.ca) GET THE BOOK The 5% Rule™: A Real Estate Cash Flow Test for Canadian Investors https://a.co/d/jdZaBXM SUBMIT A QUESTION [[email protected]](mailto:[email protected]) Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube. SPONSORS Calvin Realty calvinrealty.ca Finngo Bookkeeping & Tax [www.finngo.com/rei](http://www.finngo.com/rei) Kirkwood & Brennan Mortgage Group [www.kbmortgages.ca](http://www.kbmortgages.ca) [[email protected]](mailto:[email protected]) #realestateinvesting #canadiantax #rentalproperty #landlord