For tax purpose, a passenger vehicle may be subject to a limit on the amounts that can be deduct for capital cost allowance, interest, and leasing costs.
A passenger vehicle does not include:
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- an ambulance;
- a clearly marked Emergency Medical Service vehicle used to carry paramedics and their emergency medical equipment;
- a clearly marked police or fire emergency-response vehicle;
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- a motor vehicle you bought to use more than 50% as a taxi, a bus used in the business of transporting passengers, or a hearse in a funeral business;
- a motor vehicle (except a hearse) you bought to use in a funeral business to transport passengers;
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- a motor vehicle you bought to sell, rent, or lease in a motor vehicle sales, rental, or leasing business;
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- a van, pick-up truck, or similar vehicle that seats no more than the driver and two passengers which, in the tax year you bought or leased, was used more than 50% to transport goods and equipment to earn income;
- a van, pick-up truck, or similar vehicle that, in the tax year you bought or leased, was used 90% or more to transport goods, equipment, or passengers to earn income; and
- a pick-up truck that, in the tax year you bought or leased, was used more than 50% to transport goods, equipment, or passengers while earning or producing income at a remote work location or at a special work site that is at least 30 kilometers from the nearest community having a population of at least 40,000 persons.