2011 Automobile Deduction Limits

2011 Automobile Deduction Limits and Expense Benefit Rates Remain Unchanged.  Specifically:

  • The ceiling on the capital cost for claiming CCA for passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2010.
  • The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month for loans related to vehicles acquired after 2010.
  • The limit on deductible leasing costs will remain at $800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2010. 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 the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes for 2011 will remain at 52 cents per kilometre for the first 5,000 kilometres driven and 46 cents for each additional kilometre.
  • The general prescribed rate used to determine the taxable benefit relating to the personal portion of company owned automobile operating expenses paid by employers for 2011 will remain at 24 cents per kilometre.

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