Department of Finance Canada Provides 2010 Automobile Deduction Limits

The Department of Finance Canada announced the 2010 automobile expense deduction limits and prescribed automobile operating rates. "All of the limits and rates in effect in 2009 will continue to apply in 2010." The limit on tax-exempt allowances paid by employers to employees using personal vehicles for business purpose will remain at 52 cents per kilometre for the first 5,000 kilometres driven and 46 cents thereafter. The tax-exempt allowance for Yukon, the Northwest Territories and Nunavut will remain at 56 cents per kilometre for the first 5,000 kilometres and 50 cents thereafter.