financing a vehicle
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huckfinn
My book has been banned from schools.
This is not the place to get tax advice but the general answer is yes - you will claim the CCA and interest as expenses.
huckfinn
My book has been banned from schools.
The business claims those expenses if the business owns the vehicle. The interest, depreciation and all expenses will be on the companies books. If the business owns it, and you use the vehicle for personal use, it can be a taxable benefit against you.
If it is a personal vehicle, you can either track all your expenses annually and divvy it up between personal and business based on how much you use it for each....
Or, claim the business kilometers to the company as an expense. In most cases, the company reimburses you for that expense, so they claim it. In that case, the money paid to you is not taxed.
Another hook is your insurance company is supposed to know if you use your vehicle for company use. If they know you do, your rates can increase.
If it is a personal vehicle, you can either track all your expenses annually and divvy it up between personal and business based on how much you use it for each....
Or, claim the business kilometers to the company as an expense. In most cases, the company reimburses you for that expense, so they claim it. In that case, the money paid to you is not taxed.
Another hook is your insurance company is supposed to know if you use your vehicle for company use. If they know you do, your rates can increase.
You can claim up to $800/month on leases, unless you buy the vehicle and claim it as a business asset than that amount could be anything not sure if the nature of the business would affect that amount? you can also claim the depreciation value of the vehicle. I don't know if different businesses would have a maximum amount for example if you own a convenience store is there a maximum amount you can claim. I know for my business we have written of $77k vehicles and haven't had an issue. But clarifying it with your accountant would be best.
People in the forum do not need to be accountable to the information they provide you. Assuming you are already cautious of the info /reviews you read on providers written by anonymous people, how much can you trust tax advice submitted here?
Don't forget if the business owns the vehicle you must charge yourself an automobile benefit
https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/automobile-benefits-online-calculator-disclaimer.html
The reason for not using this escort review site as a repository for tax advice is simple. The question is not always straight-forward. As a tax advisor, I get this question often. There are a number of variables involved. Most of the answers above are right to a certain extent, but may not be applicable to the original poster's question.
Like many questions on this site, why would you come to an escort review site for advice?
Even Revenue Canada can't get their answers right a lot of the time:
http://www.cbc.ca/news/politics/revenue-canada-s-call-centres-giving-bad-tax-advice-report-1.2946998
http://www.cbc.ca/news/politics/revenue-canada-s-call-centres-giving-bad-tax-advice-report-1.2946998
huckfinn
My book has been banned from schools.
True, if the business has the loan, the interest on the loan is an expense on the balance sheet but not the principle amount.
None given or taken. All questions are permitted. But you get the answers you get, and it's legit to point out in humour or in professional irritation that the 'expertise' here lies along entirely different lines, and free advice is worth what you paid for it. Hopefully you're at least better prepped to discuss it with your accountant.
It all depends on your situation. Privately it is always better to finance than to lease. If you are a real estate agent that needs to have a late model nice car to impress clients then leasing is best. If the business is doing OK, and you plan to have the car for 5 years then I would buy a reliable car like a Toyota or Honda and change it when the manufacturer puts out a new model. For business buying with an extended warranty will ensure that you have a trouble free car for the duration of ownership.
