I am very confused here. After reading though many pages on the CRA website things still arent clear to me.
I understand the difference between the an Operating Lease and Financing. This seems clear to me. But where does the Capital lease come into play.
What are the tax deductions for a capital lease for a small business owner?
To be specific, the option i am refering to is the VW Select option offered by Volkswagen Finance. It offers a lease like payment (low) and a lump sum payment at the end of the term (60mo).
This is at 0% interest. Where it becomes more like a finance option is where the vehicle is owned by the person for the entire term. Not to VW Finance. There is no milage penalties and no damage penalties.
Can all or portion of the monthly payment be claimed depending on usage (like a lease) or depreciation and interest be claimed (like financing)?