Canadian Buyers: Luxury Tax
#46
Well if the tax passes as an expense in the LLC instead of taking a bath from paying personal taxes to pay the luxury tax there may be a benefit there no?
The following 2 users liked this post by westcoastj:
Buddhist_fist (08-02-2022),
JAWS88 (08-03-2022)
#48
well, I feel you man. i live in BC and China. we got provincial luxury tax and now the federal luxury tax in BC, wtf. and in china we have 200% customs import duty AND 20% luxury tax.
i live in both the tax blackhole country in the world. if this make you feel better.
i live in both the tax blackhole country in the world. if this make you feel better.
The following users liked this post:
shrimp money (07-31-2022)
#49
#50
I think the problem is CRA limits the value of the vehicle that can be depreciated for business purposes when used for personal use. I think that would include all associated purchase costs including taxes. The $ value exceptions are with trucks or vehicles over a certain GVW. In that case you can depreciate the high value vehicle and you apportion personal use. For trucks over $100,000 and over the GVW threshold, I believe you’d be able to roll the tax into the capital cost of the vehicle and write it off each year. None of the rules Apple to a high value sports car though.
#51
It's so bad for us in BC because there are TWO luxury taxes, the BC and also now the new federal one. What is worse is one of the luxury taxes also taxes the other luxury tax you are paying tax for the other tax. So if you are paying say 50k for one luxury tax, the other luxury tax will also tax that extra 50k (ie. they look at that 50k as part of the car price).
The following users liked this post:
JAWS88 (08-03-2022)
#52
‘The tax will not apply where the vendor of the subject item and the non-registered purchaser entered into a bona fide agreement in writing for the sale of the subject item prior to January 1, 2022. Registration will be required before the first importation or delivery of a luxury good is made’
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
#53
‘The tax will not apply where the vendor of the subject item and the non-registered purchaser entered into a bona fide agreement in writing for the sale of the subject item prior to January 1, 2022. Registration will be required before the first importation or delivery of a luxury good is made’
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
#54
Two very similar locales...
#55
‘The tax will not apply where the vendor of the subject item and the non-registered purchaser entered into a bona fide agreement in writing for the sale of the subject item prior to January 1, 2022. Registration will be required before the first importation or delivery of a luxury good is made’
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
#56
‘The tax will not apply where the vendor of the subject item and the non-registered purchaser entered into a bona fide agreement in writing for the sale of the subject item prior to January 1, 2022. Registration will be required before the first importation or delivery of a luxury good is made’
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
If we ordered a car prior to Jan 1, 2022, are we exempt then?
I have a signed bill of sale and everything from June if 2021, but just no VIN.
Would that be a good argument?
I’m from Toronto, Ontario.
My current estimated time arrival is mid Sept of 2022, which is not ideal since luxury tax would have just started, and I’ll be one of the earliest victims.
Any input would be greatly appreciated!
#57
Anyone have any updates regarding the luxury tax in Ontario, Canada?
I do have a signed ‘bill of sale’ order back from June of 2021.
It does have my full name, car I ordered etc, but no vin.
some say I can avoid the luxury tax, some say I can’t, but there’s no firm answer.
My car is coming for delivery first week of October, so I’m super eager to find out.
Thanks in advance!
I do have a signed ‘bill of sale’ order back from June of 2021.
It does have my full name, car I ordered etc, but no vin.
some say I can avoid the luxury tax, some say I can’t, but there’s no firm answer.
My car is coming for delivery first week of October, so I’m super eager to find out.
Thanks in advance!
#58
me too
Anyone have any updates regarding the luxury tax in Ontario, Canada?
I do have a signed ‘bill of sale’ order back from June of 2021.
It does have my full name, car I ordered etc, but no vin.
some say I can avoid the luxury tax, some say I can’t, but there’s no firm answer.
My car is coming for delivery first week of October, so I’m super eager to find out.
Thanks in advance!
I do have a signed ‘bill of sale’ order back from June of 2021.
It does have my full name, car I ordered etc, but no vin.
some say I can avoid the luxury tax, some say I can’t, but there’s no firm answer.
My car is coming for delivery first week of October, so I’m super eager to find out.
Thanks in advance!
I got a commitment letter and deposit from 2021 for an c2, changed to Carrera T.. but i hope i can save
#60
Agreed, at least until the backlog in allocations is cleared. If anything, it will shorten the allocation wait time for those willing to pay the LT as those who aren’t willing drop their orders.