2014 LIMITS AND RATES RELATED TO AUTOMOBILE
EXPENSES AND PERSONALTAX CREDITS

February 2014

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 2014.

 20142013
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$0.54 per km
Any additional kilometres$0.48 per km$0.48 per km
Operating costs benefit respecting an automobile provided
by the employer and used by the employee for personal purposes
$0.27 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 2014 in comparison to those for 2013.

Personal Amounts and Bracket Thresholds2014
($)
2013
($)
Basic personal amount11,13811,138
Spouse or common-law partner amount11,13811,138
Taxable income at which 22% bracket begins43,95343,561
Taxable income at which 26% bracket begins87,90787,123
Taxable income at which 29% bracket begins136,270135,054

Credit Amounts to Reflect Needs2014
($)
2013
($)
Infirm dependant amount6,589 (4)6,530 (4)

Net income threshold

6,6076,548
Caregiver amount4,5304,490

Net income threshold

15,47215,334
Disability amount7,7667,697
Amount for children with disabilities4,5304,490

Allowable child care and attendant care expenses

2,6542,630
Medical expense tax credit – 3% of net income ceiling2,1712,152
Refundable medical expense tax credit supplement1,1721,152

Minimum earnings threshold

3,3633,333

Family net income threshold

25,50625,278
Age amount6,9166,854

Net income threshold

34,87334,562
Old Age Security repayment threshold71,59270,954

(4) Includes the Family Caregiver Amount of $2,058

 

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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