Jun 26, 2026
🎧 How Canadian Real Estate Investors Can Deduct Vehicle Expenses
What Canadian landlords, Realtors and real estate investors need to know about mileage, vehicle deductions and CRA documentation.
Real estate investors spend a lot of time driving.
You may be travelling to rental properties, meeting contractors, completing repairs, showing units, serving notices, collecting documents, purchasing supplies or supervising work.
But which vehicle expenses are actually deductible?
In today’s episode, Wayne and Gabby are joined by investor-focused accountant Steve Tsonev from Finngo Bookkeeping & Tax to explain how vehicle deductions work for Canadian real estate investors.
Steve begins by explaining that the rules can change depending on whether you own one rental property or multiple properties.
If you own only one rental property, the available vehicle deductions may be more limited.
According to Steve, the property generally needs to be located within the same general area where you live, the trip should involve completing a necessary repair or maintenance task yourself, and you should be transporting the tools or materials required to complete that work.
Simply driving to a single rental property for a showing, lease signature, rent increase or general inspection may not automatically qualify in the same way.
Once an investor owns two or more rental properties, the range of deductible travel may expand.
Trips to supervise contractors, manage properties, complete showings, serve notices or handle other management responsibilities may become easier to justify as legitimate business travel.
The key is that the trip must be reasonable, properly documented and genuinely connected to earning rental income.
Steve also discusses the difference between travelling from home directly to one work location and travelling between multiple business locations.
CRA may view regular travel from home to a single workplace as a commute, while travel between properties or business locations may be treated differently.
The episode then moves into vehicle ownership.
Should the vehicle be owned personally or through a corporation?
Steve explains that when a vehicle has both personal and business use, owning it personally and receiving a reasonable kilometre reimbursement from the business is often the simplest option.
When a corporation owns a vehicle that is also used personally, the personal use may create a taxable benefit that needs to be calculated and reported.
A corporation may be better suited to owning a vehicle that is used exclusively for business, such as a dedicated service van or work truck with no meaningful personal use.
Steve also compares two common ways of claiming vehicle costs:
Actual expenses may include fuel, repairs, maintenance, insurance, interest, lease costs and depreciation, with the business-use portion calculated based on mileage.
The kilometre method uses a reasonable per-kilometre rate and may be much easier for investors, Realtors and business owners who drive regularly.
Steve explains why the kilometre method often produces a strong deduction without requiring every fuel receipt, repair invoice and operating expense to be allocated individually.
The group also discusses why buying a more expensive vehicle does not necessarily create a larger tax benefit.
CRA places limits on the amount that may be deducted for passenger vehicles, including depreciation limits for more expensive vehicles.
The best decision should be based on what makes financial sense for the investor, not on the assumption that purchasing a luxury vehicle through a corporation will create an unlimited tax deduction.
Steve also recommends several mileage-tracking tools:
The important part is to use a consistent system and confirm that the app is actively tracking trips throughout the year.
This episode is designed to give Canadian investors clarity while reminding listeners that tax advice depends on the individual facts of each situation.
When in doubt, speak directly with an investor-focused accountant who understands rental properties, corporations and real estate businesses.
🧠What You’ll Learn
đź‘Ą About Your Hosts
Wayne & Gabby Hillier are Canadian real estate investors, entrepreneurs and real estate investing coaches based in Edmonton, Alberta.
Through REI Masters, they help Canadians buy strong rental properties, build sustainable portfolios, create effective management systems and avoid unnecessary risk.
They host the Canadian Real Estate Investing Morning Show live every weekday morning, providing free real estate investing education and coaching for investors across Canada.
👤 About Steve Tsonev
Steve Tsonev is a managing partner at Finngo Bookkeeping & Tax and an experienced Canadian real estate investor.
Finngo provides bookkeeping, accounting and tax support for real estate investors, Realtors and business owners across Canada.
Steve combines professional accounting knowledge with firsthand experience owning and operating investment properties.
đź’ˇ Resources & Contact
Learn about the REI Masters Mentorship
Program:
www.reimasters.ca
Get Wayne’s book:
The 5% Rule™ – A Real Estate Cash Flow Test for Canadian
Investors
https://a.co/d/jdZaBXM
Submit a question for the show:
info@reimorningshow.com
Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.
UPCOMING EVENTS
Edmonton Garden Suites 101
Saturday, July 25, 2026
2:00 PM to 5:00 PM
Edmonton, Alberta
www.reimasters.ca/edmontongardensuites101
REI Masters Edmonton Real Estate Investing
Bus Tour
August 22, 2026
www.reimasters.ca/edmontonbustour
🤝 Sponsors
Calvin Realty
calvinrealty.ca
Finngo Bookkeeping & Tax
www.finngo.com/rei
Kirkwood & Brennan Mortgage Group
www.kbmortgages.ca
keaton@kbmortgages.ca