New Automobile Depreciation And Expense Reimbursement Limits Now In Effect
There have been some changes effective January 1, 2022 regarding the purchase and lease cost limits and expense reimbursements for tax purposes.
The cost of a vehicle on which capital cost allowance (CCA) can be claimed has increased from $30,000 to $34,000. This increased limit includes both new and used vehicles purchased on or after January 1, 2022 and applies to the cost of the vehicle before applicable sales taxes
This limit has increased from $55,000 to $59,000 for zero-emission passenger vehicles purchased on or after January 1, 2022
The maximum monthly lease deduction has increased from $800 per month to $900 per month for leases entered into on or after January 1, 2022.
For amounts paid to employees for the use of their vehicle for work purposes, the top rate to be paid in 2022 for the first 5,000 kilometres is $0.61 per km and $0.55 for each additional kilometre. If the distance is driven in any of the three territories, the top rate to be paid for the first 5,000 kilometres is $0.65 per km and $0.59 for each additional kilometre.
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