The Canada Revenue Agency (CRA) has identified a number of changes and improves to services, benefits and credits for Canadians. Here is what you need to know: http://bit.ly/2j6jVOY
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.