Chart to calculate eligible leasing costs for passenger vehicles

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https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/completing-form-t776-statement-real-estate-rentals/rental-expenses-you-deduct/motor-vehicle-expenses/chart-calculate-eligible-leasing-costs-passenger-vehicles.html

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Chart to calculate eligible leasing costs for passenger vehicles

Chart to calculate eligible leasing costs for passenger vehicles

1. Enter the total lease charges payable for the vehicle in the tax year

$ Blank space for dollar value
1

2. Enter the total lease payments deducted for the vehicle before the tax year

$ Blank space for dollar value
2

3. Enter the total number of days the vehicle was leased in the tax year and previous years

$ Blank space for dollar value
3

4. Enter the manufacturer's list price

$ Blank space for dollar value
4

5. $43,529 + GSTFootnote 1 and PST, or HSTFootnote 1 on $43,529

$ Blank space for dollar value
5

6. Enter the amount from line 4 or line 5, whichever is more

$ Blank space for dollar value
× 85%
$ Blank space for dollar value
6

7. ($1,050 + GSTFootnote 1 and PST, or $1,050 + HSTFootnote 1) × line 3 =

$ Blank space for dollar value
÷ 30 =
$ Blank space for dollar value
− line 2
$ Blank space for dollar value
7

8. ($37,000 + GSTFootnote 1 and PST, or $37,000 + HSTFootnote 1) × line 1 =

$ Blank space for dollar value
÷ line 6
$ Blank space for dollar value
8

Your eligible leasing cost is the lower of the amounts on line 7 and line 8.


Footnote 1

Use a GST rate of 5% or the HST rate applicable to your province.

Return to footnote1 Referrer


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2025-06-05