Thanks for your time, great info! Since this is new to me, I’m currently learning about all this
I will ask about the T2200/TP64.
Do you rent or buy? I’m always doing minimum 40k Km/yr and around 85% for work
Are you also including depreciation (taxe return on it) in your calculation?
I thought it was 700$/month and let’s say I do 90% professional, I will pay taxes only on the 10%
What you are telling me is different!
If it’s official I switch to an allowance, I will consult an accountant.
I lease but do less than 24k a year
Leasing is a much easier way to calculate when tax season comes around, since you're taking your total lease and then saying 85% is for work
You can buy, but the problem there is you can only declare the depreciation of the car for 3 years following the purchase of the car, to wreap the rewards you would need to change every 3 years, after those 3 years you can only place the interest paid on the loan and all other expenses x85%
the depreciation can only go up to 30% of the total value of the car up to 10k/year for 3 years.... so if you get something in the 30k range as a car... won't make sense, you won't win by buying
what I did when I first started working on the road is to buy a used BWW 328 that had only 30k on it but 4 years old, took the extended warranty and then by the time I sold the car 3 years later (at the time was doing 30-35k a year), the car was where an average car would be for the same age/mileage so I didn't lose on the resale
FYI when you resell the car, you need to place the selling price on your taxes for return purposes as well (hence the complicated part of buying vs leasing on tax returns)
if you do lease however and lets say manage to get 30-40km/year (I think some manufacturers allow you to purchase more up front the additional mileage).... if you go over at the end of your lease and end up forking out 3-4k... you can put that as an expense for that year btw
leasing is easier when tax season comes around
purchasing sounds like it could be the only way for you to go if you're really doing 40k/year
if you look at the documents we need to fill out, there's a section for CCA (capital cost allowance), thats the depreciation section that needs filling
as a side note, if VW allows you to purchase the KM upfront for cheaper.... the GOLF R, leased for 3 years with 35k/year will probably come out around 900-950$ a month... not that bad considering the mileage you need
