The use of an automobile log provides one of the safest ways to substantiate and keep track of all your automobile expenses incurred that are deductible for income tax purposes and the kilometers driven on income earning activities. The type of expenses to keep track of can be broken down into two categories. They are operating and fixed expenses.

Fixed expenses differ from operating expenses in that they relate to the automobile itself as opposed to the amount of kilometers driven. When an automobile is purchased, they would relate to the capital cost allowance and interest expense when financed. In the case of a leased automobile, such expenses would include the lease payments. It is important to note that there are special rules and restrictions which limit the portion of actual costs that can be included in your total expenses. You can consult with your Padgett Business Services representative to obtain more information on what these special rules and limitations are.