buying used car for company?

[brisk]

Interesting... I am still looking for a car :-(
Yes, my side business is incorporated. basically, if I purchase a used car, I can write off mileages and depreciation, right? Well, my inc has 2 owners, my wife and myself with no employee :-(
It's very hard to find a good used car now. what about leasing? e.g. lease a mazda 3 or civic?

Thanks

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Bullseye is definetely correct here! That being said, I know many people that just write off mileage anyway. Technically speaking, you should be incorporated to be paid mileage, but everyone I know of that does write it off without their company being incorporated (really only a couple of people), haven't had any difficulty with the government - I certainly wouldn't suggest it, though!

When you think about it, if you drive a thousand kms or so a month for business, it's reason enough to incorporate (from a financial perspective at least), especially if you own your car. My last vehicle was paid for for 3 years and I still claimed 7-8k a year in mileage expenses on it... granted I was driving a fair bit, but it was tax free money. Had the company owned the car, I would have received the benefit of driving the car, but any personal mileage would be a taxable benefit (at least that's how I remember my accountant explaining it to me - Bullseye would probably know). You may technically be better off with a cheaper car (assuming maintenance is reasonable) - figure you pay 10k for a used car, your monthly payments can be fairly easily covered by your mileage expenses...

[weebg]

You can either claim the business mileage ($ per km) OR claim the depreciation and all related car expenses (insurance, gas, maintenance, interest on the loan (if you are financing it), lease payment (if you aren't financing it), etc). The one note with the latter way of doing things is that you have to keep track of the personal/business mileage ratio and apply it to any costs you claim.

Basically, if your car is financed and you drive a lot, it might be better to claim the mileage since it adds up really quick and the calculation is simple.

If you lease your car, don't drive very far, or tend to get a new car every 3-4 years, it might be better to claim the depreciation and expenses. You'll have to do the math.

I don't think it matters if you buy a used car or new. It all boils down to how much you drive and how expensive the car it is.

Here is the government link to the current mileage reimbursement rates .

Here's the government link for business use of a motor vehicle

Yes, my side business is incorporated. basically, if I purchase a used car, I can write off mileages and depreciation, right? Well, my inc has 2 owners, my wife and myself with no employee :-(