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Automobiles - Deductions and Benefits

Deductions – 2018

Maximum cost for capital cost allowance purposes* – $30,000 plus taxes

Maximum deductible monthly lease payment – $800 plus taxes

Maximum deductible monthly interest cost on auto loans – $300

Maximum deductible allowances paid to employee:

  • For the first 5,000 km’s – $0.55
  • For each additional km – $0.49

A higher per km rate may be used if the vehicle doesn’t meet the definition of a vehicle (see below definition*). The amount must be reasonable

*Extended cabs are excluded from this limit if they are used 50% or more (crew cab/4 doors 90% or more) for the transportation of goods, equipment or passengers in the course of earning or producing income.