The rates for automobile expenses, deduction limits and the prescribed rates for determining taxable benefits on automobile operating expenses are as follows for 2022.
| 2022 | 2021 | |
|---|---|---|
|
Maximum capital cost of a passenger vehicle for the purposes of capital cost allowance |
$34,000(1) | $30,000(1) |
| Maximum capital cost of a zero-emission passenger vehicle for the purpose of capital cost allowance | $59,000 | $55,000 |
| Allowable interest expenses | $300 per month | $300 per month |
| Allowable leasing expenses (2) and (3) | $900 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 |
$0.61 per km | $0.59 per km |
|
Any additional kilometres |
$0.55 per km | $0.53 per km |
(1) Does not include the GST and/or QST.
(2) 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.
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.
