Income tax deductions for vehicles
Rent your personal vehicle to your corporation for $.54 per kilometer without receipts! Rent it for even more if you can show that it costs more. (There are extra reporting requirements for the higher deductions.)
We can do a quick calculation together without receipts - just to see if you can claim a higher amount. For 2016, Canada Revenue Agency allows: $.54/km for the first 5,000 km in year, then $.48/km.
Canada Revenue Agency auditors insist you have a mileage log to prove the business mileage claim.
If your company gives you or anyone else access to a corporate a vehicle for personal use, the company is required to report a taxable amount on that person's T4 for the privilege of having a free vehicle for personal use.
Passenger vehicle taxable benefits are based on this CRA calculation link.
Ask me about reducing the taxable benefits for motor vehicles.
Buy or Lease?
There are very big financial and taxation impacts to buying versus leasing a vehicle.
Can't decide whether it is better to buy or lease a vehicle? The short answer, is buy it.
This Industry Canada website lets you enter the buy versus lease numbers, to see which is better for you.
Please ask me about this difficult business decision.