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Thread: Buying a new vehicle for (mostly) business purposes.

  1. #1
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    Default Buying a new vehicle for (mostly) business purposes.

    First off, dont tell me to ask my accountant, i'm too cheap for that, lol, my wife does the accounting and it's not something we have really looked in to... looking for real world experience.

    I have a couple businesses and they've been pretty good the past few years, i am looking to buy a vehicle and curious the best way to go about it for tax purposes.
    It would be used probably 80% for business, but at the same time, that's not going to be a lot, maybe 10k per year... WFH right now and dont do much driving for my side gig.

    The question is with reguards to paying for it, assuming i have the money to pay for it outright cash, is that the best way to go? finance? Lease? i would like to own the vehicle forever basically, i have most of my vehicles long term and have no need to upgrade every few years.

    On top of that, to write it off mostly for business, i'm sole prop so i assume self registering it is fine as far as a business standpoint goes?

    Anybody with experience with sole prop and buying a vehicle, your insight would be appreciated. (may look at going INC some time, i hear its better for taxes)
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    Lease.

    Track your KMs.

    And yes, talk to an accountant. I learned this once the hard way fuck. It's like... $300 dude. lol.

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    Exactly that lol

    Leasing is acceptable on Beyond now. Members understand that just cuz you lease it doesn’t mean you can’t afford it lol

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    Ok let me piggyback on this thread. I have been doing well since I started yoloing on some straddles between mom's basement and Starbucks. I trade everywhere from Costco to Kidzgo. Can I write off a leased vehicle? I am serious and I don't want to pay someone $300.
    Last edited by The_Rural_Juror; 07-16-2020 at 08:25 PM.

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    Leasing makes sense if you insist on driving a car <2yo forever and OP said he wants to own this car forever.
    That's le different.

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    Forever ever?

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    Quote Originally Posted by ThePenIsMightier View Post
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    Leasing makes sense if you insist on driving a car <2yo forever and OP said he wants to own this car forever.
    That's le different.
    But he also said he wants it to be a business expense. He's gonna want to lease for a time and buy it out, unless his current circumstances are better suited to financing... which an accountant would be better able to determine vs. some rando's, anti-maskers, and authoritarian left beyonders.

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    You guys keep advising to ask accountants are making me look dumber than mom says I am. I went to ask my neighbors across the street who are production accountants and they gave me the weirdest look before closing their garage door on me. So I came home dejected and google-fu'd for an hour. wtf guys. I was not aware that there are as many flavors of accountants as there are engineers. What's next? Different kinds of geologists?


    Edit: Fuck you all kindly for ruining my relationship with my dealers.
    Last edited by The_Rural_Juror; 07-17-2020 at 08:47 AM.

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    We buy our company vehicles rather than leasing. There are different reasons for doing either but our accountant in our situation suggested purchase rather than leasing. In the end I think having an extra depreciating asset on the books works in our favour.
    Bob Blakeborough

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    An accountant can look at your financials, your projections, and your estimated vehicle usage and tell you if leasing is better than buying. For most people, it is. But sometimes it makes more sense to have the company pay you per km (tax free up to an amount). Other times the company buys it and writes off depreciation.

    If any of your businesses are moving towards being serious, get an accountant. If not, lease it.

    And always keep a log book in your car, be generous when filling it out. Even a 2km drive to a gas station. Make it a habit to write in that book every time you get in and out of the vehicle. One audit will make it all worth while.
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    A lot of this depends on how nice a vehicle you want to drive for your business as well, the mileage rates you can use according to CRA guidelines is $0.58 on first 5000km and then $0.52 on the rest. If you buy it personally and charge that to the business you could theoretically reduce your taxable income in your company by significantly more than the depreciation of the car. I lease my vehicles personally and charge my usage back to my company, it's a lot easier for allowing me to use the car personally as only the % of the vehicle I use for business purposes hits my expenses. If the vehicle you are going to buy for your company is strictly for company use or at least a 90/10ish type scenario then buy it using the company, dont forget that company vehicles being used personally will have an effect on your personal income as a taxable benefit.

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