Based on Guide T4036, you can deduct motor vehicle expenses in the following circumstances:
If you own one rental property:
You can deduct reasonable motor vehicle expenses if you meet all the following conditions:
– you receive income from only one rental property that is in the general area where you live;
– you personally do part, or all, of the necessary repairs and maintenance on the property; and
– you have motor vehicle expenses to transport tools and materials to the rental property.
You cannot deduct motor vehicle expenses you incur to
collect rents. These are personal expenses.
If you own two or more rental properties:
In addition to the expenses listed above, you can deduct reasonable motor vehicle expenses you incur to do any of the following:
– collect rents;
– supervise repairs; and
– generally manage the properties.
This applies whether your rental properties are located in or outside the general area where you live. However, your rental properties have to be located in at least two different sites away from your principal residence. The motor vehicle expenses that we consider to be reasonable depend on the circumstances of your situation.
CRA link (page 13): [media]http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-10e.pdf[/media]