Vehicle leasing for small business
I know this is something that people always suggest I should speak to my accountant about but I find it odd and worrisome that small business owners themselves don't have info on this directly? Sooooo, I'm hoping you can help!
I will have a small business (I'm a dental specialist, starting my own surgery in the near future) and with that, my wife will also be an employee of the practice (she will be the manager, or some similar role). Basically, I don't know much of anything when it comes to deducting vehicle costs, etc. so while I have time to get this sorted, I want to know how best to proceed before I begin shopping for vehicles. I will be leasing/purchasing (although I have been told leasing is the best option) for both myself and my wife (we will be buying both vehicles at essentially the same time), so I am unclear if both of these vehicles can be business vehicles? They won't be just going to work and back; as a specialist, I have to network and do a fair bit of weekly travel to meet GP's, lunches/dinner's, study clubs, conferences, etc. For my wife, it would be similar but less so. I guess I should break down my questions, so here goes:
(1) can we both have business vehicles with some level of deduction on both?
(2) if not, and we could only have one company vehicle, am I correct to assume that I should choose the more expensive of the two to be the company vehicle? Clearly, I understand that the actual "company use" vehicle should be the company vehicle but you understand what I'm asking, I think
(3) does it matter what the vehicle is? In that, will having a high performance car matter vs. a pickup truck, for example? I don't know, just throwing things out here...does the CRA frown upon say a Challenger Hellcat as a company car? Again, just using examples, no one is buying a Hellcat just yet, LOL
(4) assuming one or both are company vehicles, can I also use them for personal stuff, like driving to the grocery store, holidays, etc? My guess is I need a log book to track these things, which makes sense.
Have a missed an obvious question? Please share whatever knowledge you may have, I'm all ears
I'm most curious how much of a lease payment can be deducted against the company (I'm guessing that is how it works right??? We will both be paid employees of the specialist "company" earning a wage)
Thank you
I will have a small business (I'm a dental specialist, starting my own surgery in the near future) and with that, my wife will also be an employee of the practice (she will be the manager, or some similar role). Basically, I don't know much of anything when it comes to deducting vehicle costs, etc. so while I have time to get this sorted, I want to know how best to proceed before I begin shopping for vehicles. I will be leasing/purchasing (although I have been told leasing is the best option) for both myself and my wife (we will be buying both vehicles at essentially the same time), so I am unclear if both of these vehicles can be business vehicles? They won't be just going to work and back; as a specialist, I have to network and do a fair bit of weekly travel to meet GP's, lunches/dinner's, study clubs, conferences, etc. For my wife, it would be similar but less so. I guess I should break down my questions, so here goes:
(1) can we both have business vehicles with some level of deduction on both?
(2) if not, and we could only have one company vehicle, am I correct to assume that I should choose the more expensive of the two to be the company vehicle? Clearly, I understand that the actual "company use" vehicle should be the company vehicle but you understand what I'm asking, I think
(3) does it matter what the vehicle is? In that, will having a high performance car matter vs. a pickup truck, for example? I don't know, just throwing things out here...does the CRA frown upon say a Challenger Hellcat as a company car? Again, just using examples, no one is buying a Hellcat just yet, LOL
(4) assuming one or both are company vehicles, can I also use them for personal stuff, like driving to the grocery store, holidays, etc? My guess is I need a log book to track these things, which makes sense.
Have a missed an obvious question? Please share whatever knowledge you may have, I'm all ears
I'm most curious how much of a lease payment can be deducted against the company (I'm guessing that is how it works right??? We will both be paid employees of the specialist "company" earning a wage)Thank you
