The Honourable Jim Flaherty, Minister of Finance, today announced the automobile expense deduction limits and the operating expense benefit rates for 2013.
The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes will increase by 1 cent to 54 cents per kilometre for the first 5,000 kilometres driven and to 48 cents for each additional kilometre.
The rates for Yukon, the Northwest Territories and Nunavut are traditionally set 4 cents higher and they will also increase by 1 cent to 58 cents for the first 5,000 kilometres driven and to 52 cents for each additional kilometre.
The rate used to determine the taxable benefit for the personal portion of automobile operating expenses paid by employers will increase by 1 cent to 27 cents per kilometre. The automobile standby charge for employer-provided vehicles, which is not affected by this announcement, is calculated separately and is also included in the employee's income.
While the above will be sufficient for most churches, additional details for specific situations including capital cost allowance, leasing costs, interest costs, etc. may be viewed on the Department of Finance Canada website.