IT Contractor lease a car
Any IT contractor here lease a car under their own company's name?
How do you justify this to CRA?
Can we say its 100 % for business purpose only even you office is your home?
Jun 25th, 2018 11:32 pm
Jun 26th, 2018 12:08 am
Jun 26th, 2018 12:22 am
Jun 26th, 2018 7:09 am
Jun 26th, 2018 10:27 am
Jun 26th, 2018 11:15 pm
Since you call yourself a "contractor" I assume you are a sole proprietor in which case there is no distinction between you and your "company", so it makes no difference. If you are in fact incorporated than I can not answer as I've never gone that route.
Jun 26th, 2018 11:36 pm
Jun 27th, 2018 8:15 am
Jun 27th, 2018 9:05 am
You still need mileage logdmacdonal9 wrote: ↑ I've done the math on this a couple times, and it always works out better to just lease it personally and charge mileage back to the company. The per kilometer rates are actually generous.
Doing this avoids any potential headaches with the standby charge as well, and keeping a mileage log is less work than apportioning all the related expenses (for which you'd need receipts). There are great apps for logging mileage automatically. I use MileIQ, it's fantastic.
Jun 27th, 2018 9:11 am
Here's a great starting point. https://www.canada.ca/en/revenue-agency ... enses.html
Jun 27th, 2018 4:10 pm
Wait, you say you have a home office? Or you use the car only for going to office?