News and Insights

Revenu Québec News Release: Deduction Limits and Rates for 2012 Applicable to the Use of an Automobile

Tax Development Jan 24, 2012

Revenu Québec has announced the automobile expense deduction limits and the prescribed rates for automobile operating expense benefits that will apply for the 2012 taxation year. These rates are in line with the rates previously announced by the federal Department of Finance.  Specifically, the rates in effect will be as follows:

  • The capital cost allowance limit for passenger vehicles purchased in 2012 will remain at $30,000, plus GST and QST;
  • The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2011 (under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling);
  • The limit on tax deductible, per kilometre allowances paid to employees for using their personal vehicles for business purposes increases 1 cent to 53 cents per kilometre for the first 5,000 kilometres, and 47 cents per kilometre thereafter;
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2011; and
  • The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating costs increases 2 cents to 26 cents per kilometre (for taxpayers employed principally in the selling or leasing of automobiles, the prescribed rate increases 2 cents to 23 cents per kilometre).  

The news release may be accessed at the following link:  

2012 Automobile Limits