ARTICLE · 12 JANUARY 2017

CRA Releases 2017 Automobile Deduction Limits And Expense Benefit Rates

Rotfleisch & Samulovitch P.C.

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The use of a company automobile has strict limits on deductible amounts and income inclusions. These rates are updated on an annual basis. The 2017 automobile rates have now been released by CRA.

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David Rotfleisch

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The use of a company automobile has strict limits on deductible amounts and income inclusions. These rates are updated on an annual basis. The 2017 automobile rates have now been released by CRA. Most rates remain the same as in 2016 however some rates have changed:

Here are a few examples of employees who may qualify:

The general prescribed rate used to compute the employee taxable benefit relating to the personal portion of car operating expenses paid by employers will decline to $0.25 per kilometer from $0.26 but for employees involved mainly in selling or leasing automobiles the 2017 prescribed rate is $0.22 per kilometre.

Most other rates remain unchanged for 2017. This includes:

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