The ceiling on the capital cost of passenger vehicles for capital cost allowance purposes will remain at $30,000.00 (plus HST) for purchases after 2017.
The limit on deductible leasing costs will remain at $800.00/month (plus HST) for leases entered into after 2017. In addition, there is a second restriction on the deduction of automobile lease payments. This ensures that lease costs relating to the portion of the price of the vehicle that is in excess of the capital cost ceiling, are not deductible.
The limit on tax-exempt allowances paid by employers to employees has increased by 1 cent to $0.55/km for the first 5,000 kilometers driven and $0.49/km for each additional kilometer.
The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300.00 per month for loans related to vehicles acquired after 2017.
The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers has increased to $0.26/km.