News and Insights

Revenu Québec Tax News: Deduction Limits and Rates for 2014 Applicable to the Use of an Automobile 

Tax Development Jan 29, 2014

Revenu Québec has announced the automobile expense deduction limits and the prescribed rates for automobile operating expense benefits that will apply for the 2014 taxation year. These rates are in line with the rates previously announced by the federal Department of Finance and remain unchanged from the prior year. Specifically, the rates in effect will be as follows: 

  • The capital cost allowance limit for passenger vehicles purchased in 2014 remains unchanged 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 2013 (under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling);
  • The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2013;  
  • The limit on tax deductible, per kilometre allowances paid to employees for using their personal vehicles for business purposes is still 54 cents per kilometre for the first 5,000 kilometres, and 48 cents per kilometre thereafter; and  
  • The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating costs stays at 27 cents per kilometre (for taxpayers employed principally in the selling or leasing of automobiles, the prescribed rate remains at 24 cents per kilometre).

Please note that the above limits and rates may be subject to the input tax refund restriction for large businesses.

The Tax News may be accessed at the following link: 
2014 Automobile Limits