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Tax - Exempt Automobile Allowance Limits on Payments by Employers to Employees for 2010 (all provinces excluding territories)

$0.52 / kilometre on first 5,000 kms

$0.46 / kilometre in excess of 5,000 kms

(Reflects key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.)

Employer-Provided Vehicles – Operating Expenses Taxable Benefit - Generally Prescribed Rate Relating to Personal Portion of Automobile Operating Expenses Paid by Employers for 2010

$0.24 / kilometre
(all taxpayers not employed principally in selling or leasing automobiles)

$0.21 / kilometre
(only taxpayers employed principally in selling or leasing automobiles)

(A separate automobile standby charge benefit for having an employer-provided vehicle available for personal use is also to be calculated and included in the employee’s income.)

Ceiling on Capital Cost of Passenger Vehicles for Capital Cost Allowance (CCA) for 2010

$30,000 (plus applicable federal and provincial sales taxes) for purchases after 2009

(This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.)

Maximum Allowable Interest Deductions on Automobile Purchase Loans for 2010

$300 per month for loans related to vehicles acquired after 2009

Limits on Deductible Automobile Leasing Costs for 2010

$800 per month (plus applicable federal and provincial taxes) for leases entered into after 2009

(A separate restriction prorates deductible automobile lease costs where the value of the vehicle exceeds the capital cost ceiling as indicated above.)