Deductions – 2020 and 2021
Maximum cost for capital cost allowance purposes* – $34,000 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:
- 2020 for the first 5,000 km’s - $0.59
- 2020 for each additional km - $0.53
- 2021 for the first 5,000 km's - $0.61
- 2021 for each addiitional km - $0.55
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.