Automobile Expenses

Personal automobiles used for business can have a portion of their costs written off against the income.  The 2010 limits will remain the same as last year at $30,000 for capital cost and $800 per month for leases.  Interest is capped at $300 per month.

Simply put, you accumulate all costs associated with your automobile.  You can prorate these costs in relation to the business kms over total kms.  The limits stated above apply.

The limit on tax exempt allowances for 2011 is $0.52 for the first 5,000 kms and $0.46 for each additional km.  This has remained unchanged since 2008.