Entrepreneurship & Small Business

Sole proprietor car lease question

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  • Apr 19th, 2018 8:32 am
Deal Addict
Jul 15, 2006
3668 posts
567 upvotes

Sole proprietor car lease question

Hello,
I'm looking for some advise on a situation where my wife is a sole proprietorship and I'm leasing a car. She has been driving the car for her business mostly because it's much better on gas than her car.
From a CRA\Tax perspective, can she claim the vehicle deduction for the car lease if the actual lease is under my name?

Thanks in advance.

Cheers,
4 replies
Deal Addict
Jul 15, 2006
3668 posts
567 upvotes
Has anyone here been in this situation before?
Deal Addict
Nov 13, 2006
1377 posts
1186 upvotes
Get your wife to pay you a 50 cents per km usage of the car and tell her to expense that amount paid to auto expenses.

Keep a log of what she uses the car for (business wise) and at the end of the year Dec 31 (or whatever fiscal year end is), add up all your gas receipts, insurance, repairs, lease payments etc... and multiply it by the business mileage over the total mileage of the car. Take that amount and compare it to the 50 cents per km which she was paying you and reconcile it with one last payment to you.
Deal Addict
Jul 15, 2006
3668 posts
567 upvotes
And I would declare that 50 cents per km as income then?

Cheers.
asifnana wrote: Get your wife to pay you a 50 cents per km usage of the car and tell her to expense that amount paid to auto expenses.

Keep a log of what she uses the car for (business wise) and at the end of the year Dec 31 (or whatever fiscal year end is), add up all your gas receipts, insurance, repairs, lease payments etc... and multiply it by the business mileage over the total mileage of the car. Take that amount and compare it to the 50 cents per km which she was paying you and reconcile it with one last payment to you.
Deal Addict
Nov 13, 2006
1377 posts
1186 upvotes
Cress wrote: And I would declare that 50 cents per km as income then?

Cheers.
Nope, its a reimbursement and it will go your personal bank account.

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