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  • May 16th, 2006 1:55 pm
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[OP]
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Mar 17, 2006
372 posts
30 upvotes

Tax and Cars for Business use

Hi
I hope I am not going to bore you all to death with the dumb arse questions that I post over the next few weeks, I am a newly arrived immigrant from England ware I ran my own business for ten years, and would now like to start a business here in Canada not being familiar with business, taxes and working pratacies it is going to be a steep learning curve for me so please be patient. :confused: :confused:
Are there any sites apart from the government ones that provide help to small business and employers regarding tax and allowable expenses?


Right 1st question (I know that there is a similar thread running but it dissent really answer my questions) Car for business use, what is the most tax cost effective way there is of running one i.e. Lease or finance or buy outright, I will primarily be using for business mainly visiting customers. I have looked at quite a few business accounts of business I have been interested in buying and most seem to completely run there vehicles on the company even though some have been retail shops that have all there goods delivered.

My other option is to use the car I purchased for cash new in December 2005, but with doing this will I be able write of all the cost as it was purchased before business was formed and also in the last tax year. At the moment the wife is using this but only for very small trips so maybe I could buy her a cheep second hand car.

Thank you in advance for any help given.

Mick
1 reply
Newbie
Mar 9, 2006
46 posts
3 upvotes
Don't worry about stupid questions. In worst case, people would just ignore them. :) Besides the forum is to learn from one another.

The options you choose between buying a car out right, financing, or leasing will depend on a number of things (such as the type of business you are in). You can write off the percentage of the car that you used for business. The interest, taxes, insurance, maintenace, and fuel can be written off. Don't forget the car washes :) Or in some cases (depending on how you or your accountant decides to do the calculation, you can write off the depreciation as well). You should consult a good accountant. Often he/she will work out different scenarios based on your situation to find the best solution. That's why we pay them [accountants] the big bucks. :)

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