Trying to complete a 2024 T2. Client purchased an auto at max allowable cost of 41,810 (37k+hst). When enter this, the program says the max allowable has been exceeded?

When purchasing a vehicle for business use, the CRA sets a maximum allowable amount that can be claimed for tax deductions or capital cost allowances, Prbaines58.

For vehicles acquired in 2024, this limit is set at $37,000 plus applicable GST/HST or PST. Any cost over this limit won't increase the deduction base. Thus, if a vehicle costs more than $37,000, the deduction will still be calculated based on the $37,000 cap.

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