Depreciation
#31
Burning Brakes
Thanks Bob - haven't figured out yet how to post reply with quote. In my case I am on commission and as such required to use my own vehicle. My employer has to sign a T2200 annually confirming such. This was one of the reasons I bought my Boxster in December (as opposed to the following spring) as I was able to write down 15% (1/2 year rule) despite having owned the car for only 8 days. Given that I have 2 kids under 3 my Boxster is almost 100% 'business' use.
#32
Instructor
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I believe part of the reason for the 15% first year write down rule was for situations like yours, (8) days. It sounds like you have the good accountant others are looking for.
Cheers.
Bob
Cheers.
Bob
#33
New car depreciation always increases dramatically in luxury and high end cars. Funny one of the previous posts stating the GT3 depreciating at a rate of $1500/mth. I could buy a brand new Honda Civic every year and junk it for that kind of money!
#35
Team Owner
although i think just about all cars depreciate .. I think it is more of a function of the economy at the time of sale more thn anything. But that said .. I would not sit on a car I wanted to sell thinking I will get more for it next year ..
But I can spout all I want being the buyer of many depreciated cars others have taken the hit on . I am driving 2 Audis that I payed 2500 dollars for ... for BOTH !!!!
But I can spout all I want being the buyer of many depreciated cars others have taken the hit on . I am driving 2 Audis that I payed 2500 dollars for ... for BOTH !!!!
#36
Drifting
In my defence, I thought the car would depreciate, at most, $30k in four years because the 996 GT3's were still selling for $125k when I bought my 2007. Just goes to show that you can't predict the unpredictable, but you certainly can stack the odds in your favour by buying used.
#37
Rennlist Member
#38
Burning Brakes
The depreciation on a car in the year of purchase is 15% as mentioned. Does not matter whether you buy on the first or last day of the year. The 15% (half rate) is to average the time and stop us guys from buying a car in late December and getting a whole year write off. I managed to get l 11 1/2 months lease deductible and then the whole 30% for a car bought in mid December once. I guess this is why they put the 1/2 year rule in. However, the subsequent years is 30% of the declining balance left on the car.
Also, any car over $30,000 plus taxes goes into a special depreciation class (10.1) where the depreciation is 15% of the firs5 $30,000 only plus taxes and then you get 30% on that declining balance. The balance of the depreciation is all for your pleasure (Huh)
If you are on salary and want to get depreciation and other auto expenses your employer must complete a form T2200 (Declaration of condintions of employement) that confirms to Canada Revenue that you are required to have a car as part of your employement contract. Also, you still have to allocate part of the costs of operation etc. as personal. You are supposed to keep a "log" book to justify your business use (remember home to work and return is deemed personal). This form gets filed with your income tax return.
If you are self employed the rules are pretty similar as far as the over $30k car and personal versus business use.
Yes, I'm a practising Chartered Accountant in Vancouver and deal with this daily in my practice for and with my clients. My daily driver is a BMW 650 Cab (you want to discuss depreciation!) and the TOY which is stricly personal an '04 996 TT Cab Tip.
John in Vancouver
Also, any car over $30,000 plus taxes goes into a special depreciation class (10.1) where the depreciation is 15% of the firs5 $30,000 only plus taxes and then you get 30% on that declining balance. The balance of the depreciation is all for your pleasure (Huh)
If you are on salary and want to get depreciation and other auto expenses your employer must complete a form T2200 (Declaration of condintions of employement) that confirms to Canada Revenue that you are required to have a car as part of your employement contract. Also, you still have to allocate part of the costs of operation etc. as personal. You are supposed to keep a "log" book to justify your business use (remember home to work and return is deemed personal). This form gets filed with your income tax return.
If you are self employed the rules are pretty similar as far as the over $30k car and personal versus business use.
Yes, I'm a practising Chartered Accountant in Vancouver and deal with this daily in my practice for and with my clients. My daily driver is a BMW 650 Cab (you want to discuss depreciation!) and the TOY which is stricly personal an '04 996 TT Cab Tip.
John in Vancouver
#39
Race Car
Thread Starter
Funny you should mention that. I was just remarking on this ad - 02 turbo tip, 80k, $30k US. Talk about painful depreciation!
http://forums.pelicanparts.com/porsc...-29-900-a.html
http://forums.pelicanparts.com/porsc...-29-900-a.html
#40
Race Car
Funny you should mention that. I was just remarking on this ad - 02 turbo tip, 80k, $30k US. Talk about painful depreciation!
http://forums.pelicanparts.com/porsc...-29-900-a.html
http://forums.pelicanparts.com/porsc...-29-900-a.html
#41
Drifting
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Thanks Bob - haven't figured out yet how to post reply with quote. In my case I am on commission and as such required to use my own vehicle. My employer has to sign a T2200 annually confirming such. This was one of the reasons I bought my Boxster in December (as opposed to the following spring) as I was able to write down 15% (1/2 year rule) despite having owned the car for only 8 days. Given that I have 2 kids under 3 my Boxster is almost 100% 'business' use.
#42
Race Car
Thread Starter
Absolutely - it's the standard depreciation curve. A 911 in average or better condition will really only depreciate so much. It looks like the bottom line is $10k - that's what the mid-years are going for now. Though SCs are around 15, and many think they've bottomed out and will start to come up. As they get more rare, prices get higher. Supply and demand. How many 996s are there out there?
#43
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Cheers.
Bob
#44
Not funny when it's coming out of my wallet!
In my defence, I thought the car would depreciate, at most, $30k in four years because the 996 GT3's were still selling for $125k when I bought my 2007. Just goes to show that you can't predict the unpredictable, but you certainly can stack the odds in your favour by buying used.
In my defence, I thought the car would depreciate, at most, $30k in four years because the 996 GT3's were still selling for $125k when I bought my 2007. Just goes to show that you can't predict the unpredictable, but you certainly can stack the odds in your favour by buying used.
#45
Rest In Peace Jaak
Cable Guy
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Cable Guy
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In August I got a 2010 F150 SCREW FX4 Luxury W/nav & camera, power moon roof, etc that was listed at 56,700. I added hard cover, bed liner & 5 year warranty ... total cost with tax's was ~ $42,500. Could not get this deal today ...