A separate log should be kept for each vehicle which is driven for both business and personal use. For the self-employed, only the business portion of vehicle expenses can be deducted from income, and GST/HST input tax credits are only allowed related to the business use of a vehicle. For businesses which provide vehicles to employees, trip logs substantiate the business use of a vehicle, and the business must calculate the taxable benefit to employees based on the personal use.
The log should record the date of each business trip, destination, reason for the trip, and the kilometres driven. The odometer reading of the vehicle must also be recorded, at the beginning and end of each year, to determine the total kilometres driven in the fiscal period.
If you buy, sell or trade your vehicle during the year, be sure to record the odometer reading at that time.
Logbook for a sample period
Once a taxpayer has maintained a trip log covering a full 12-month period that is typical for the business (the "base year"), Canada Revenue Agency (CRA) has indicated they would "afford considerable weight" to a trip log maintained for a "sample period" as evidence of the business use for a full year, if it meets the following criteria:
 | A trip log must be maintained for a sample period of at least one continuous 3 month period in each subsequent year after the base year. |
| The distances travelled and business use of the vehicle during the 3 month sample period is within 10% of the corresponding figures for the same 3 month period in the base year. |
| The calculated annual business use of the vehicle in a subsequent year does not go up or down by more than 10% in comparison to the base year. Courtesy of www.taxtips.ca |
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