2015 Limits and rates related to automobile expenses and federal personal tax credits
February 2015
AUTOMOBILE EXPENSES
The rates for automobile expenses, deduction limits and the prescribed rates for determining taxable benefits on automobile operating expenses are as follows for 2015.
| 2016 | 2015 | |
|---|---|---|
| Maximum capital cost of a passenger vehicle for the purposes of capital cost allowance | $30,000 (1) | $30,000 (1) |
| Allowable interest expenses | $300 per month | $300 per month |
| Allowable leasing expenses (2) and (3) | $800 per month (1) | $800 per month (1) |
| Tax-exempt allowances paid by the employer to the employee – based on the distance the employee travels in his or her automobile: | ||
| First 5,000 kilometres | $0.54 per km | $0.55 per km |
| Any additional kilometres | $0.48 per km | $0.49 per km |
| Operating costs benefit respecting an automobile provided by the employer and used by the employee for personal purposes | $0.26 per km | $0.27 per km |
(1) Does not include the GST and/or the QST.
(2) Please note that the lease limit remains the same during the entire period of the lease.
(3) This limit is one of the two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the automobile exceeds the maximum capital cost.
PERSONAL INCOME TAX PARAMETERS
The following table shows the Federal personal income tax parameters for 2015 in comparison to those for 2014.
| Personal Amounts and Bracket Thresholds | 2015 ($) | 2014 ($) |
|---|---|---|
| Basic personal amount | 11,327 | 11,138 |
| Spouse or common-law partner amount | 11,327 | 11,138 |
| Taxable income at which 22% bracket begins | 44,701 | 43,953 |
| Taxable income at which 26% bracket begins | 89,401 | 87,907 |
| Taxable income at which 29% bracket begins | 138,586 | 136,270 |
| Credit Amounts to Reflect Needs | 2015 ($) | 2014 ($) |
|---|---|---|
| Infirm dependant amount | 6,700 (4) | 6,589 (4) |
Net income threshold | 6,720 | 6,607 |
| Caregiver amount | 4,608 | 4,530 |
Net income threshold | 15,735 | 15,472 |
| Disability amount | 7,899 | 7,766 |
| Amount for children with disabilities | 4,607 | 4,530 |
Allowable child care and attendant care expenses | 2,699 | 2,654 |
| Medical expense tax credit – 3% of net income ceiling | 2,208 | 2,171 |
| Refundable medical expense tax credit supplement | 1,172 | 1,152 |
Minimum earnings threshold | 3,421 | 3,363 |
Family net income threshold | 25,939 | 25,506 |
| Age amount | 7,033 | 6,916 |
Net income threshold | 35,466 | 34,873 |
| Old Age Security repayment threshold | 72,809 | 71,592 |
(4) Includes the Family Caregiver Amount of $2,093 ($2,058 in 2014).
The matters highlighted in this tax memo are presented in broad general terms and, of course, cannot be applied without consideration of all circumstances. The firm will be pleased to discuss with recipients the possible effects of these matters in specific situations.
For additional information, please contact a member of our Tax Deparment.
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