Government Announces 2014 Automobile Deduction Limits and Expense Benefit Rates for Business
The Department of Finance Canada recently announced the 2013 automobile deduction limits and expense benefit rates for business:
The 2013 limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has increased by 1 cent to 54 cents per kilometre for the first 5,000 kilometres driven, and to 48 cents for each additional kilometre.
For Yukon, the Northwest Territories and Nunavut, the tax-exempt allowance is set 4 cents higher, and will also increase by 1 cent to 58 cents for the first 5,000 kilometres driven and to 52 cents for each additional kilometre.
The allowance amounts reflect the key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.
Source: The Department of Finance Canada
Updated: January 2013
CPSA MEMBERS ONLY: Access a detailed report on Vehicle Costs & Policies, including average reimbursement rates based on type of vehicle and kilometres driven.
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