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SOURCE CarData Consultants
AMHERST, N.Y., Dec. 29, 2017 /PRNewswire/ -- At yearend the Canadian Department of Finance announces the coming years Automobile Deduction Limits and Expense Benefit Rates for Business. This is commonly referred to as the CRA Standard Kilometer Rate.
CRA STANDARD KILOMETER RATE
Effective January 1, the CRA Cents Per Kilometer Rate for 2018 is up 1 cent to 55 cents per kilometer for the first 5,000 kms and 49 cents over 5,000 kms. The standard kilometer rate for business is based on an annual study of the fixed and variable costs of operating an automobile.
The application for the CRA Kilometer Rate is to reimburse occasional business use.
The table below created by CarData Online displays the CRA Standard Kilometer Rate for the past 13 years. The rate has been in the 54 and 55 cents per kilometer range since 2013. Before that there was another period of consistency for the four years from 2008 to 2011.
CRA Standard Kilometer Rate
Below 5000 km
Above 5000 km
CAPITAL COST ALLOWANCE
Per the Department of Finance Canada, "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 2017. 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 2017."
Click HERE for more details on CarData Consultants, and how to find the best CRA compliant reimbursement plan for your business.
Please see official CRA release HERE.
About CarData Consultants CarData provides precision vehicle reimbursement programs for the mobile workforce. CarData services save money, reduce risk, and remove administration. CarData programs are compliant with the IRS and the CRA procedures.
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