In the never ending online search... from the CRA's Pamphlet Using Your Home For Daycare (P134) Found here: http://www.cra-arc.gc.ca/E/pub/tg/p1....html#P98_5077

Motor vehicle expenses

If you use your vehicle occasionally for business purposes, you might benefit from claiming motor vehicle expenses on a per trip basis. For example, taking the children to a park or on an excursion may involve expenses for fuel and parking.

However, if you regularly use your vehicle for business and personal trips, you can claim part of the total operating expenses for this vehicle as a business expense. You must keep accurate records that show the portion of the total kilometres that were driven to earn business income. For more information on motor vehicle records, see Keeping records.

Operating expenses include :
•licence and registration fees;
•insurance;
•gas and oil;
•maintenance and repairs;
•interest you pay on a loan used to buy a vehicle;
•leasing costs.

Do not include any capital cost allowance (CCA) in the calculation of your operating expenses. Instead, claim any CCA on line 9936 of Form T2125. For more information about CCA, see Capital cost allowance.

To calculate the vehicle expenses you can claim, multiply the total operating expenses for the vehicle by the business kilometres and divide the result by the total kilometres.

Report the motor vehicle operating expense on line 9281 of Form T2125.



Note


There is a limit to the amount of interest, leasing costs and CCA you can deduct for a vehicle you use for your daycare. We explain these limits in Chapter 3, “Motor vehicle expenses”, of Guide T4002.



Example

Kayla runs a daycare in her home. Every week, she uses her van to take the children out to a museum or a gallery. In the year, she drove a total of 20,000 kilometres. Out of those, she drove 2,500 kilometres for the outings with the children. The operating expenses for Kayla’s van were $3,700.

She calculates the business part of these expenses as follows:

$3,700 in operating expenses × (2,500 ÷ 20,000 km ) = $462.50

Kayla can deduct $462.50 for the business part of her vehicle expenses.