Both self-employed and employed healthcare professionals,
including medical residents, may be able to deduct automobile
expenses in their personal or corporate income tax returns, but
only if certain criteria are met and adequate supporting records
are kept.
Basic criteria and calculation
The basic guideline is that automobile
expenses can only be deducted to the extent that they relate to
business use.
Kilometres driven for business purposes
The Canada Revenue Agency ("CRA") has specific
guidance regarding the number of kilometres driven for business
purposes during the year. For example, travel to and from a
taxpayer's home to his or her principal place of business (the
main location where income is earned) would usually be excluded, as
the CRA considers these kilometres to be personal. Only travel to
other places of business should be included. For example, travel
from the principal place of business to a different clinic or
hospital, to a patient
