The following limits and rates are in effect for year 2009 and 2010
- The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes is $30,000. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
- The maximum allowable interest deduction for amounts borrowed to purchase an automobile is $300 per month.
- The limit on deductible leasing costs is $800 per month (plus applicable federal and provincial sales taxes). This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.
- The limit on deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes is 52 cents per kilometer for the first 5,000 kilometers driven and 46 cents for each additional kilometer. For Yukon, the Northwest Territories and Nunavut, the tax-exempt allowance is 56 cents for the first 5,000 kilometers driven and 50 cents for each additional kilometer.
- The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers is 24 cents per kilometer. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate is 21 cents per kilometer. The additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge) is calculated separately and is also included in the employee’s income.
