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tax deduction on taxes paid for used car purchase?
- Thread starter mmmnaked
- Start date
Not deductible but you take it off what you remit
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Riceburner
Well-known member
If the car is for the business...yes. No if it's for personal use.
Yes. If it's personally owned car you can deduct a certain % off and get HST back. If it's under the company name used for company purposes you get 100% back.
Just did this for a car I bought for the company last year.
Just did this for a car I bought for the company last year.
Thanks I guess I'm using the wrong words... Basically I'm asking if I get to keep that portion of HST (the amount I paid on the car purchase) at the end of the year
Sounds like a yes, if the car is used strictly for business... Or I would work out a percentage based on usage.
It should be an input tax credit 100% if it is owned by the company your accountant will know more
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It all depends on the size of the business. If you have multiple management and already own personal cars it's better to do it under business and get the full write off. Minor personal stuff doesn't matter ... CRA won't care that much as long as it's majority business.
Talk to a proper CPA/CA for proper advise!
Also talk to your accountant about stand-by charges.
CRA places a rather high value on you having at your disposal a "Free" vehicle. IIRC it's 2% of the purchase price per month as the driver's taxable benefits. After 10 years when the vehicle is worth a grand or two you still pay 2% of the purchase price.
CRA places a rather high value on you having at your disposal a "Free" vehicle. IIRC it's 2% of the purchase price per month as the driver's taxable benefits. After 10 years when the vehicle is worth a grand or two you still pay 2% of the purchase price.
, it's over $0.50 per Km. Accountant would be the person to talk to.|
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