Hello guys, I am just about to place an order for a 992 and was planning on getting it under my marketing company. I was wondering if anyone from Canada can tell me what kind of tax deduction I can get and if its better to finance or lease. The car will mostly be used for the business. Im getting it under my business because I usually need to take clients out and go to different events representing the company and a nice car will work well with that.

 

https://driving.ca/column/lorraine/lorraine-explains-use-your-car-for-work-heres-what-you-can-and-cant-claim-in-taxes

https://www.google.ca/amp/s/turbotax.intuit.ca/tips/should-i-buy-or-lease-my-new-business-vehicle-7668/amp


For 100% accuracy, you should really consult your own tax accountant

 

Not worth the hassle trying to justify a 911 or similar car as a business expense. You need to maintain meticulous records of personal versus bona fide business use unless it’s provided by your company to you under the umbrella of a car allowance, which then needs to be claimed as as a taxable benefit. You can do it, but executed improperly this falls under the same category as egregiously high entertainment expenses to Revenue Canada. I’ve done it in the past (not on a 911 but an M3) and would never even consider doing it again.

 

I cannot speak to how things work in Canada. However, it's not difficult to do this in the US.

The MOST important thing that many will attempt to get around is tax obligations. If you are going to do it the proper way, it needs to be recorded as income and you need to pay the taxes.
Many think it's just a free car that the company pays for. Well, that's not exactly true. The company can make the lease payments, but it still needs to be recorded as a part of your income
and you need to pay the taxes on said income.

There may be other ways of accomplishing this, but what I stated above is the cleanest and most honest way of handling the situation.

 

It would be just matter of time when our tax agency in Canada will conduct a full audit on this buy/lease cost write off. So, OP really needs a tax accountant to walk him through.

 

Canada Revenue Agency can be a PITA when it comes to high value vehicles. I assume the OP is aware of the incoming luxury tax (10% of sale or 20% of value over $100k). Unlikely an order placed today will provide for a delivered car in 2021 so be prepared to dig deep for the extra costs as of January of 2022 which will apply to the full value of the vehicle and not just the lease payments.

 

Yeah I know about it. It has been proposed but hasn't been passed yet, I doubt it will tbh seems like a wrong time for it logically but even if it does it's fine.

 

Don’t ask us, talk to your accountant and they can walk you through it.