Car for business
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- randommail
Are there any self-employed or business owners here who have bought or leased a car for their business? I'm planning on 75% business use.
Any thoughts regarding a 5-year finance or 3-year lease? Google says in some situations, the lease may provide better tax deduction incentive depending on the price of the car.
- albums0
Word on the street is lease, though I own, but I don't own brand new, if you want a new car, leasing is the best bet tax wise for your business.
- ETM0
Well, firstly are you incorporated or just a trade name/sole proprietorship? If you're incorporated, your company owns the asset (or liability). In a proprietorship, you still personally do, and you might as well buy it yourself anyway and track the mileage. That's what I do. Mileage recorded for biz, goes against mileage from the whole year, That percentage (in my case it's 38%) goes against total costs (payment, maintenance, fuel etc.) as a deduction come tax time.
- or here, rather than percentage, you can alternatively just take a flat rate cost per km ($0.52)ETM