Write Off Your Dream Car | MUST WATCH Before Buying a Vehicle for Business in Canada

One of the perks of being an entrepreneur is getting a nice car through your business. Instead of just paying out of pocket, what’s better than getting your business to pay for it and geting a tax deduction? As tempting as it is, there are certain limitations that the Canadian Revenue Agency (CRA) imposes. Vehicle related deductions are also one of the most audited areas. So make sure to watch the entire video to understand what your options are!

00:00 Intro
00:32 What is Business Purpose?
01:09 Types of Vehicle Tax Deduction
02:11 How to Structure Vehicle For Business Use
03:05 Buying vs. Leasing
06:21 Personal Use for Employer Provided Vehicle
07:55 Business Use for Employee Provided Vehicle
08:24 Good Practices

CRA LINKS MENTIONED

Disclaimer: Note this video is not tax advice and should be used for informational purposes only. Consult with your own tax advisor for specific advice related to your specific business situation and needs.
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WHO AM I:
Gabrielle is a CPA and Tax Expert, as well as the founder of Balance + Wealth CPA, a licensed CPA firm that specializes in Tax. Prior to starting her business, worked as a Tax Manager at one of the Big 4 Accounting Firms for 7+ years, working with Global 500 companies. Gabrielle posts weekly videos on personal finance, business finance, and tax tips.

[asmongoldbald]

Awesome video, esp for someone in Canada, thanks!! looking to purchase/lease a vehicle now and plan on starting up a corp next year so this is very helpful

I've been looking for information like this but for Canada thank you definitely subscribed

[TristanStanley]

Very help full. Thank you. Please continue to make videos

[markgranada]

This was so helpful! Could you do a video about the tax advantages of wrapping your car with advertising for your business? I am a realtor and considering having my Corporation purchase a Tesla and wrapping it so that it acts as a billboard for my business. Can this make it 100% deductible?

[reckegui]

Hello. Could you make a video detailing more about leasing a ZEV for business?

[mrchineseable]

This is a super helpful video. I really appreciate the detail and comprehensive information. my one question related to the EV deduction. Does the CRA require you to provide a percentage on the deduction like on the yearly depreciation figure, or lease payment? So if I were to buy an EV that costs $50k, can i deduct 100% of that or do i have to project my anticipated percentage used for business for the life of the vehicle? sorry if that question wasnt clear! and thanks again for the great videos. subscribing for more in the future.

[horaciocanada]

Perfect explanation a nd simple, thanks so much for your help.

[aljek-eleg]

I retired early and am now working as an independent travel nurse through an agency. Do I need to establish a sole proprietorship in order to be eligible for the full tax deduction of 55k to purchase an electric vehicle? Thank you in advance, and more power to your channel.

[sandrobrito]

A question: The deduction is on the taxable income or on the total tax amount you have to pay?

[okggokstore]

This is valuable information. Thank you so much 💓

[tanglegripperhairdetangle]

Are you able to change your current business name if it’s not a corporation but it is registered?

[Jerombeze]

Question, Say you buy an imported EV that was never plated in Canada before owning and had few enough kilometres that when it was registered by the provincial insurance, it was considered new. This was also purchased for employment which required me to have my own car for employment trips on weekly bases of 75% business use and 25% personal use since I own another car not used for work.  
Can it be considered Class 54 and claim ZEV on tax return for the calendar year of 2023 if purchased before December 31, 2023. ?

[samwang]

OMG such great video, the only problem is too fast I have to set 0.75 speed to understand.

[RamaHealthBeauty]

is it applied for sole propriotiship? when we have real states ?
thanks

[jimshomecomforts]

Gabrielle, do you have any knowledge on retiring overseas with taxes?

[vibhorjain]

Thanks for the video. If I rent a car with enterprise and use for travel to my clients. Can I claim full rental car expenses? Which line item can i claim? Car is also available during the weekend for personal purposes.

[maxm]

I'm planning to buy an EV car under my business next year. Does it matter which time of the year to buy? E.g beginning vs end of year in terms of the write offs?

[benji]

Just a theoretical question. I’ve seen a few businesses wrap their “business car/truck”. Would personal driving be considered ok where it’s promoting/advertising the current business (like a mobile billboard) when the vehicle is seen out in public spaces? Thanks!

[Rushi]

Is it mandatory to buy a vehicle under a business name in order to claim business expenses? also, 34k CAP has a 30% allowance. Is that mean if I bought used vehicle at 34k then I can deduct 10200 (30%) each year?

[mijas-rus]

As far as I know, if you buy a zero-emission vehicle (ZEV) and take advantage of $5K federal government incentive (vehicle price reduced by $5K), you can't depreciate 100% in the first year. It's either/or - either take $5K of the price off, or depreciate 100% in the first year