The Department of Finance announced the automobile expense deduction limits and the prescribed rates for automobile operating expense benefits that will apply for the 2021 taxation year. This year’s announcement contains only one rate change from the prior year. Effective January 1, 2021, the rates will be as follows:
Please note that the above limits and rates may be subject to the recapture of input tax credit requirements in Prince Edward Island until March 31, 2021.
The news release may be accessed at the following link: 2021 Automobile Limits