December 23, 2021 – Auto Deduction Limit Raised for 2022

by | Dec 23, 2021 | Industry Updates

To address rising interest rates, the Department of Finance announced that new auto deduction limits will come into effect as of January 1, 2022.

  • The ceiling for capital cost allowances (CCA) for zero-emission passenger vehicles will be increased to $59,000 from $55,000 for vehicles acquired after January 1, 2022.
  • The ceiling for CCA for passenger vehicles (new and used) will increase from $30,000 to $34,000, before tax, acquired on or before January 1, 2022.
  • Deductible leasing costs on new leases will increase from $800 to $900 per month before tax.
  • Employer allowances on personal use of employee vehicles for business purposes in provinces will increase by 2 cents to 61 cents per km for the first 5,000 kms driven, and 55 cents for each additional km. The territories will increase by 2 cents to 65 per km for the first 5,000 kms and 59 cents for each additional km.
  • The general prescribed rate to determine the taxable benefit related to the personal portion of auto expenses paid by the employer will increase 2 cents to 29 cents per km. For people employed in selling or leasing vehicles, the rate will increase by 2 cents to 26 cents per km.

See the press release for more information.

Recent Posts

Habitat Build Day 2022

Habitat Build Day 2022

Who is Habitat for Humanity? Habitat for Humanity Manitoba is one of 1,400 affiliates worldwide working to build safe, decent, and affordable homes for families. Every year, they partner with communities in Manitoba to help working, lower-income families achieve...

Quarterly Income Tax Instalment June 15, 2022

Quarterly Income Tax Instalment June 15, 2022

"When a due date falls on a Saturday, a Sunday, or a holiday recognized by the Canada Revenue Agency, we consider your payment to be paid on time if we receive it on the next business day." *Source: Canada Revenue Agency