Quote:
Originally Posted by ssjGoku69
How indepth do you want to tallk about tax impact on lease vs buy? 
Leasing a car is preferred from a tax-savings point of view since the whole payment can potentially be used to reduce taxable income (up to $800/month). When the car is purchased, only the interest portion of the loan payment (if any) and the CCA "depreciation"of the car (valued up to $30,000) can be used to reduce taxes. What i mean is that, if your purchase/financed a car worth more than $30k, the amount exceeding $30k doesn't benefit you for tax purposes. This is where leasing is an advantageous.
When the car is leased, there are more tax deductions, but the trade-off normally is a higher cash outflow. If your business can handle that cash outflow, great, lease it up. |
68, thank you for your response, much appreciated.
Now I'm confused even further here, can you explain how I can write off the lease for tax purposes? I figured that was only allowed if it's commensurate to my employment, my company reimburses me by the KM, thus I've never been able to claim against my vehicle.
Am I completely missing out a write off for all my leases over the years?