IT Contractor - Lease or Finance?

https://turbotax.intuit.ca/tips/should- ... e-7668/amp

Since you are self employed, do consult your own tax accountant for complete answer

darkhorz1 wrote: ↑ Anyone working here as an independent IT contractor? For tax purposes and claiming expenses, what do you feel is better - leasing or buying a car?

If you are writing off the whole lease... beware of audits. You better have a lot of different concurrent clients and have them be geographically diverse and you better have 2nd car where you can use for personal usage.

My accountant told me years ago that 1 client 1 site at any given time won't cut it. But it doesn't stop some from trying hoping they won't be audited and I know a lot who got away with it for years.

Most just keep logbook and claim mileage. Much easier to defend when audited. If that's the case, how you go about getting your cars doesn't really matter.

Did it many years ago, are you working from home? because that would greatly reduce what you can write off. I never leased but I did write off the business portion of my vehicle expense

blexann wrote: ↑ Did it many years ago, are you working from home? because that would greatly reduce what you can write off. I never leased but I did write off the business portion of my vehicle expense

Did you claim expense on a per km basis?

darkhorz1 wrote: ↑ Did you claim expense on a per km basis?

https://www.canada.ca/en/revenue-agency ... cords.html

darkhorz1 wrote: ↑ Anyone working here as an independent IT contractor? For tax purposes and claiming expenses, what do you feel is better - leasing or buying a car?

If you're a typical IT contractor who works for one bank for months on end, forget about it lol

Reminder to folks that CRA can choose to audit you and go back several years, so anyone who thinks they're getting away with it could be in for a shocker.

Yup. Unless you have multiple clients and are constantly going to different locations, don’t even bother.