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Mileage rates for 2019

2019 Automobile Deduction Limits and Expense Benefit Rates for Business

2019 Automobile deduction limits and the prescribed rates for the automobile operating expense benefit that will apply in 2019 are as follows:

  • The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2018. This ceiling restricts the cost of a vehicle on which CCA may be claimed for business purposes.
  • The limit on deductible leasing costs will remain at $800 per month (plus applicable federal and provincial sales taxes) for leases entered into after 2018. This limit is one of two restrictions on the deduction of automobile lease payments. A separate restriction prorates deductible lease costs where the value of the vehicle exceeds the capital cost ceiling.
  • The maximum allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300 per month for loans related to vehicles acquired after 2018.
  • The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes for 2019 will be increased to 58 cents per kilometre for the first 5,000 kilometres driven and to 52 cents for each additional kilometre. For Yukon, the Northwest Territories and Nunavut, the tax-exempt allowance is set 4 cents higher, and will also increase to 62 cents for the first 5,000 kilometres driven and to 56 cents for each additional kilometre. The allowance amounts reflect the key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.
  • The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating expenses paid by employers for 2019 will increase to 28 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate will increase to 25 cents per kilometre. The amount of the benefit reflects the costs of operating an automobile. The additional benefit of having an employer-provided vehicle available for personal use (i.e., the automobile standby charge, which is not affected by this announcement) is calculated separately and is also included in the employee’s income.

 

Postal Strike possible, Minimize cash flow issues

It’s been a long while since I blogged, and I am hoping to get back to it this summer.  I love to write, but sometimes life gets in the way. You may have seen the news that our postal services may get disrupted next week.  There is the possibility for either a strike or a… Keep Reading …

When CRA sends you a letter

It’s that time of year again, when the letters from Canada Revenue Agency come out to verify deductions made on those tax returns that were filed last spring.  We got two this week, my son Kevan got one on Tuesday auditing his rent receipts.  Today’s mail brings one for my husband Brook, auditing our charitable… Keep Reading …

CRA Spam phone calls threatening lawsuits

Beware of new telephone scams Ottawa, Ontario, June 10, 2015… The Canada Revenue Agency (CRA) is noting an increase in telephone scams where the caller claims to be from the CRA but is not, and is asking Canadians to beware—these calls are fraudulent and could result in identity and financial theft. Some recent telephone scams… Keep Reading …

More Fraudulent CRA Spam emails

Got this from a client today.  Unfortunately, she clicked the link, thus we get page 2, which shows they were phishing for credit card info.  Remember, CRA does not correspond by email.  If you get an email from CRA, delete immediately. Keep Reading …

Another Scam – E-transfer from CRA

Got an email from a client today asking if this was a legitimate email from Canada Revenue Agency (CRA).  It is not, and you should not click on the link (I removed it.).  CRA does not give refunds through interact e-transfer.  Refunds are only provided by cheque or direct deposit.   CANADA REVENUE AGENCY has… Keep Reading …

Computer trouble at Canada Revenue Agency

Online access and efiling capabilities have been temporary suspended at Canada Revenue Agency due to internet security concerns.  For updates check the CRA home page at http://www.cra-arc.gc.ca/menu-e.html Here is the current status direct from the CRA home page: Statement from the Canada Revenue Agency The Canada Revenue Agency (CRA) places first priority on ensuring the… Keep Reading …

Tuesday Tax Tips – Week 2 – Family Caregiver Amount

The second in a series of weekly blog posts till the end of April with some tax items you may not be aware of. If you are supporting a dependent who is physically or mentally challenged, you may be eligible to claim the Caregiver amount. From the Canada Revenue Agency(CRA) website:  The family caregiver amount (FCA) helps Canadians… Keep Reading …