Buy back lease in Corporation name (instead of personal)

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Jun 4th, 2020 7:36 am

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May 27th, 2020 4:03 pm

Tush171717 [OP]: Newbie; Jun 1, 2019; 57 posts; 47 upvotes

May 27th, 2020 4:03 pm

Buy back lease in Corporation name (instead of personal)

I have a lease that is ending next month with Mercedes. I'd like to buy it back in my family business' instead of personal. Mercedes has told me they can't do that and I will have to buy it back personally (since my name is on the lease) then transfer ownership to the corporation.

I would be responsible for paying HST at point of sale with Mercedes. Then once I transfer ownership to the corporation I would be paying HST again on FMV at Service Ontario. Is there any way around this? I am hoping not to pay HST twice. Note I'm not a shareholder with the company.

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May 27th, 2020 4:22 pm

Xtrema: Deal Fanatic; Sep 1, 2004; 9639 posts; 9144 upvotes

May 27th, 2020 4:22 pm

Yeah, A Delorean

Should have lease under you corporation in the 1st place.

Jun 3rd, 2020 11:18 pm

Tush171717 [OP]: Newbie; Jun 1, 2019; 57 posts; 47 upvotes

Jun 3rd, 2020 11:18 pm

FYI for anyone in the same boat as me, I called around multiple dealerships and found one that was willing to do the transfer.

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Jun 4th, 2020 7:36 am

afretes: Deal Fanatic; May 22, 2009; 5039 posts; 1097 upvotes; Caledon

Jun 4th, 2020 7:36 am

Tush171717 wrote: ↑ I have a lease that is ending next month with Mercedes. I'd like to buy it back in my family business' instead of personal. Mercedes has told me they can't do that and I will have to buy it back personally (since my name is on the lease) then transfer ownership to the corporation.

I would be responsible for paying HST at point of sale with Mercedes. Then once I transfer ownership to the corporation I would be paying HST again on FMV at Service Ontario. Is there any way around this? I am hoping not to pay HST twice. Note I'm not a shareholder with the company.

They most likely want to keep the car, making hard for you to buy it. Contact MB directly, skip that dealer or go to another dealer.

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