How do I track vehicle expenses when my corporation owns the vehicle?

The corporation should pay for all the operating expenses.

The corporation should pay for all of the operating expenses for the vehicle, and the personal use portion is transferred to owner’s compensation. Unless most of the vehicle use is business, you still need to keep track of the total kilometres driven during the year, as well as the business kilometres driven. If your vehicle is all business-use, you should probably have a second personal vehicle in the household.

The easiest way to log your kilometres is to book oil changes at the start of every fiscal year so you can track your starting and ending kilometres. MileIQ is a great app for tracking the business kilometres.

The vehicle must be registered and insured in the corporation's name. If the vehicle is financed, the financing should also be in the corporation’s name. If you lease, the lease needs to be in the corporation’s name.