CRA – 2015 Auto Rates
The Finance Ministry announced that the automobile limits and rates for 2015 are set as follows:
- The limit on the deduction of tax-exempt allowances paid by employers to employees that use their personal vehicle for business purposes for 2015 will be increased by 1 cent to 55 cents / kilometre for the first 5,000 kilometres driven and to 49 cents for each additional kilometre. For the Northwest Territories, Nunavut and Yukon, the tax-exempt allowance is set 4 cents higher, and will also increase by 1 cent to 59 cents / kilometre for the first 5,000 kilometres driven and to 53 cents for each additional kilometre.
- Prior year limits and rates are available here.
The following will remain the same as in 2014:
- The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes). This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
- The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 / month for loans related to vehicles.
- The limit on deductible leasing costs will remain at $800 / month (plus applicable federal and provincial sales taxes) for leases. This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.
- The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers for 2015 remains at 27 cents / kilometer. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate remains at 24 cents / kilometre. The additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge) is calculated separately and is also included in the employee’s income.
Source: Government Announces 2015 Automobile Deduction Limits and Expense Benefit Rates for Business (Dec. 23, 2014)