Revenu Québec Announcement: Deduction Limits and Rates for 2015 Applicable to the Use of an Automobile

Revenu Québec has announced the automobile expense deduction limits and the prescribed rates for automobile operating expense benefits that will apply for the 2015 taxation year. These rates are in line with the rates previously announced by the federal Department of Finance.   

Specifically, the limits and rates in effect will be as follows: 

• The limit on tax deductible, per kilometre allowances paid to employees for using their personal vehicles for business purposes has increased by one cent each to 55 cents per kilometre for the first 5,000 kilometres, and 49 cents per kilometre thereafter;
• The capital cost allowance limit for passenger vehicles purchased in 2015 remains unchanged at $30,000, plus GST and QST;
• The limit on deductible leasing costs stays at $800 per month (plus GST and QST) for leases entered into after 2014 (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 2014; and
• The general prescribed rate used to determine the taxable benefit relating to the personal portion of automobile operating costs remains 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 Information Bulletin may be accessed at the following link:

2015 Automobile Limits and Rates