Tax Rules For Deductibility of Automobile Expenses

 

Effective January 1, 2003 changes have been made for the deductibility of auto expenses.

 

	FEDERAL	QUEBEC
Employers may deduct from employee owned auto - per kilometre 1st 5,000K	$ 0.42	$ 0.42
- in excess of 5,000K	$ 0.36	$ 0.36
Leases (new) entered into by company - maximum	$ 800	$ 800
Max capital cost of passenger vehicle	$ 30,000	$ 30,000
Monthly interest on auto loans	$ 300	$ 300
Personal portion of auto expenses paid by employer - per kilometer	$ 0.17	$ 0.17

 

---

RESTRICTION

---

This memo is intended to provide information regarding the deductibility of automoblie expenses. Each individual needs to review and evaluate his or her own situation. We do not take responsibility for any actions taken as a result of the information contained herein.