38 /
Automobiles—Deductions and Benefits
2012
2013
Deduction limits
1
Maximum cost for capital cost allowance purposes
2
$30,000
$30,000
Maximum deductible monthly lease payment
3
$800
$800
Maximum deductible monthly interest
cost on automobile loans
4
$300
$300
Maximum deductible allowances paid to employees
First 5,000 employment-related kilometres
53¢
54¢
Each additional employment-related kilometre
47¢
48¢
Taxable benefits
Standby charge benefit
Employer-owned automobile
2% per month of original cost
Employer-leased automobile
2/3 of monthly lease cost
Operating cost benefit per kilometre of personal use
5
26¢
27¢
Allowances
6
Taxable with certain exceptions
Notes
(1) When a motor vehicle is purchased or leased for the purpose of earning income, certain
expenses may be deducted. The more common types of motor vehicle expenses include
fuel, insurance, maintenance and repairs, licence and registration fees, capital cost
allowance, lease payments, and interest. The expenses also include all applicable federal
and provincial sales taxes (GST, HST, PST and QST) to the extent the taxpayer is not a sales
tax registrant and does not claim an input tax credit (input tax refund in Québec) for the
taxes paid.
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Current as of September 30, 2013