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.

 20162015
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 Thresholds2015
($)
2014
($)
Basic personal amount11,32711,138
Spouse or common-law partner amount11,32711,138
Taxable income at which 22% bracket begins44,70143,953
Taxable income at which 26% bracket begins89,40187,907
Taxable income at which 29% bracket begins138,586136,270

Credit Amounts to Reflect Needs2015
($)
2014
($)
Infirm dependant amount6,700 (4)6,589 (4)

Net income threshold

6,7206,607
Caregiver amount4,6084,530

Net income threshold

15,73515,472
Disability amount7,8997,766
Amount for children with disabilities4,6074,530

Allowable child care and attendant care expenses

2,6992,654
Medical expense tax credit – 3% of net income ceiling2,2082,171
Refundable medical expense tax credit supplement1,1721,152

Minimum earnings threshold

3,4213,363

Family net income threshold

25,93925,506
Age amount7,0336,916

Net income threshold

35,46634,873
Old Age Security repayment threshold72,80971,592

(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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