The Department of Finance has released the automobile deduction limits and expense benefit rates which will apply for the 2011 taxation year. The rates, which are unchanged from 2010, are as follows:
- the ceiling on the cost of passenger vehicles for capital cost allowance purposes remains at $30,000:
- the maximum allowable interest deduction on automobile borrowings will be $300 per month
- the limit on deductible leasing costs will remain at $800 per month; and
- the general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers will be 24 cents per kilometre.
More information on the rates and limits which will apply for 2011 can be found in the Department of Finance news release, available on the Department Web site at