Automobile Expense Deduction Limits for 2017

It’s official now:  Finance Canada confirmed on December 30 that restricted fixed costs for certain auto expenses claimed by business owners and employed commission sales people, which haven’t changed in some time; won’t be revised for 2017 either.

The ceiling limits for cars purchased in 2017 are the following:

• CCA Ceiling:  $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2016.
   
• Interest Deductions:  The maximum allowable interest deduction remain at $300 per month.
   
• Leasing Costs:  The maximum remains at $800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2016. A second restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.

Knowledge Bureau will be providing additional detail for professional advisors at the January DAW; or if you prefer to study at home, consider the Professional Proprietorship Course available 24/7 to shore up your professional credentials.

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