company lease not as good as car loan for US contractor?
Everyone always says having the company leasing a car is better financially if you are a contractor as you can write off the lease value as an expense. However if you have work travel to the US and no Canadian billing, it seems to me with 20% business use, you end up having to pay even more tax from your personal income as a tax benefit of 80% and not less than $1000 of HST for the benefit. To me it seems this particular case it makes more sense to just buy the car on a car loan and claim the 20% as business use mileage.
My accountant says in this situation it's less tax overall to just take a car loan and buy a 3 year old car. Compared to a lease on a car, best case it is a wash so better to own the car and get money back on the trade-in when it happens in future.
Does anyone have a second opinion or agree with the accountant?
My accountant says in this situation it's less tax overall to just take a car loan and buy a 3 year old car. Compared to a lease on a car, best case it is a wash so better to own the car and get money back on the trade-in when it happens in future.
Does anyone have a second opinion or agree with the accountant?