If you use the same vehicle for business and pleasure, a logbook should be kept to identify the business, and personal use. If you are able to deduct vehicle expenses, then only the business portion can be deducted from income. If a business is providing you with a vehicle, a logbook must be kept to separate the business and personal use. The business must then calculate the taxable benefit to the employee based on the personal use of the vehicle.
A log should note the date, destination, reason, and kilometers driven. Make sure to record the odometer at the beginning, and end of the year.
Typically, your first drive of the day is not business related. Your drive to the office, and your drive home from the office is not deductible.
If you are driving from the office to a customer’s house, and then back to the office, those two trips would be considered for business use and would be deductible.
If you are self-employed and work out of your home, the first drive to a customer’s house or somewhere else done for business purposes would be deductible.