The income tax deduction limits and expense benefit rates for 2018 are as follows:
- 55 cents/km for the first 5,000 km and 49 cents/km for each kilometer over 5,000 for tax-exempt allowances paid to the employee (one cent ($0.01) higher than for 2017);
- 26 cents/km (23 cents/km for the automobile leasing and retail businesses) taxable benefit for the operating expense costs reimbursed to an employee (one cent ($0.01) higher than for 2017);
- $30,000 (plus GST-QST) is the capital cost limit for passenger vehicles (same as in 2017);
- $300 is the monthly interest deduction limit on a loan used to buy an automobile (same as in 2017);
- $800 (plus GST-QST) per month is the deduction limit on an automobile leasing costs (same as in 2017).
About the Author :
Daniel A. Brisebois, LL.B., D.D.N, M. Tax, is a Tax Specialist at Crowe BGK
Connect with him: [email protected]