Canadians - Tax Question

[Razorguns]

Quick question to the peanut gallery:

Is it true that you have to LEASE a vehicle (as opposed to finance) in order to write it off as a business expense for tax purposes?

 

[Griz1]

False.

 

[sigweed]

if you own a vehicle and use it strictly for work purposes, you can get an amount refunded based on km used... i think its usually along the lines of $.25/km

 

[Griz1]

There's actually a shit pile of stuff regarding vehicles. Depends on your business and a host of other factors.

 

[Razorguns]

Thanks.

That's what i assumed. I just needed quick confirmation on it. Lease/Finance is just another method of paying for a vehicle that is still owned by someone else.

It's it's usage that should be of concern to the government.

 

[wutangnomo]

You want to keep your business expenses down, hence leasing. Since it's tax deductible (varies depending on the class your vehicle is assigned) it really makes no sense to finance.

 

[buffer1]

thats bullshit,my accountant writes all my stuff off weather it,s a lease or owning

 

[buffer1]

and the tax man never has any complaints

 

[manny78]

Quick question to the peanut gallery:

Is it true that you have to LEASE a vehicle (as opposed to finance) in order to write it off as a business expense for tax purposes?

Financing is possible but as wutangnomo said, it makes a lot more sense to just lease.

 

[wutangnomo]

thats bullshit,my accountant writes all my stuff off weather it,s a lease or owning

You didn't understand the gist of my post. I never said you can't write things off if they are financed. You can. With respect to vehicles for business use, it makes more sense to lease rather then finance so as to keep vehicle expenses (and thus businesses expenses) down. You won't find too many businesses that finance their vehicles.