Cardata Reviews Trends Over the Past Decade
At year end the Department of Finance Announces the coming years Automobile Deduction Limits and Expense Benefit Rates for Business. This is commonly referred to a the CRA Standard Kilometer Rate.
CRA STANDARD KILOMETER RATE
Effective January 1, the CRA Cents Per Kilometer Rate for 2021 remains at .59 cents per kilometer for the first 5,000 kilometers driven. For each kilometer over 5,000 the rate remains .53 cents per km. 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 18 years. The rate remained the same for the four years from 2008 to 2011.
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 2020. 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 2020.”
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Please see official CRA release HERE.
About Cardata: 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.