On December 30, 2016, Finance Minister Bill Morneau announced the income tax deduction limits and expense benefit rates that will apply in 2017 when using an automobile for business purposes.
For 2017, only one of the automobile limits changed. The operating expense taxable benefit for personal use of a vehicle is reduced 1¢.
The maximum deductible tax exempt vehicle allowance is as follows:
- First 5000 kilometres - $0.54 per km
- Additional kilometres - $0.48 per km
(for Yukon Territory, Northwest Territory, and Nunavut add $0.04).
The operating expense taxable benefit for personal use of a vehicle:
- General rate - $0.25 per km
The rate for vehicle sales and leasing employees is $0.22 per km (plus the stand-by charge benefit).
The capital cost limit for passenger vehicles is $30,000 (plus applicable federal and provincial sales taxes).
The maximum allowable interest deduction is $300 per month.
The limit on deductible leasing costs is $800 per month (plus applicable federal and provincial sales taxes).
For additional information or inquiries on how these rates apply to you, please contact any member of our tax team.
FOR IMMEDIATE RELEASE
December 14, 2016
O’Leary, PE: MRSB Group has acquired the accounting practice of Bruce J. Burden Chartered Professional Accountants.
Bruce J. Burden has been serving clients in western and central PEI for the past 12 years in his own accounting practice and was involved in the public accounting industry for the better part of 10 years prior. During this time, Bruce has dedicated himself to clients in western and central PEI and has provided quality accounting and tax services.
“I have truly enjoyed working with my clients over the years. After some discussion with my family and careful consideration, I decided that the time was right to pursue other opportunities in my professional career. I am pleased that the MRSB team expressed interest in my practice and I am confident they will continue to work closely with my clients and the people of western and central PEI” says Bruce Burden.
The MRSB Group has been serving Islanders for close to 40 years with accounting, auditing, tax, bookkeeping, valuation and business consulting services. During this time, they have come to know Islanders from tip-to-tip and look forward to continuing a presence in western Prince Edward Island. There are currently 57 full-time MRSB employees working across Prince Edward Island.
“We know Bruce is a respected and highly regarded professional,” says Lloyd Compton, Partner, MRSB Group. “We are thrilled to have this opportunity to work with him in this transition and look forward to getting to know the clients Bruce has served. We wish Bruce and his family well in the future.”
MRSB Group will operate out of 454 Main Street, O’Leary, in addition to existing offices at 500 Granville Street, Summerside and 139 Queen Street, Charlottetown.
For more information on this merger:
Michelle Burge, Partner