Personal Finance

Buying EV: through Business Tax Credit or with Personal $5k Rebate?

  • Last Updated:
  • Mar 25th, 2019 3:47 pm
Deal Addict
Mar 21, 2013
1960 posts

Buying EV: through Business Tax Credit or with Personal $5k Rebate?

Hey all,

Looking at getting an EV or PHEV this year. I am an incorporated real estate agent in AB who historically uses my vehicle 70-80% for business use, usually around 10,000-15,000kms total use per year (no commute). However, with an EV there will be a strong incentive to use the car for all errands, as much as possible. I might consider buying a Honda Clarity, which falls below $45k. We can use it as an example.

Would it be better for me to buy the car personally or with money from the corporation?

I've calculated a bunch of standby charges, they don't include personal operating expense benefit though (I guess I would have to pay a portion to corp at year end). I attached a table. I've also attached a table of the effect of the tax benefit on different EVs.

Using 12% taxed money from the corp is very appealing, rather than after personal tax money. However paying 50c+ to myself per KM from corp also would be appealing once car was fully owned personally...

Other info: I make $80k from a second job and don't plan to take out dividends from the corp unless needed. Plus my wife makes $155k, so her marginal rate personally is even higher...

To me there seems to be too many factors for me to really understand it or make a spreadsheet without guidance or pre-made comparison tool. Can any accountants advise on what looks best here, and any resources? Thanks.
Screen Shot 2019-03-25 at 1.41.02 PM.png
Screen Shot 2019-03-25 at 1.43.23 PM.png