Okay so I found out in Canada I can write off the entire lease of a business truck but only the interest and depreciation if I purchase.... so why do so many of you dislike leasing vehicles?

What am I missing?

mybluedanube wrote:
you will be over on the kilometers most likely and accrue no value while handing them wads of cash. At turn in time I owed them $8000 and walked away with nothing. Dealers like leases cause they make money on them..nobody gives you a new truck for a deal.

a used vehicles maintenance and repairs is 100% write off. Think about that.

Here its Not Worth it because of the Km's and the they are Tool of the Trade meaning seem to Be a mess After say Three Years
I have my VW Transporter syncro Four Years Next September ,got it with 96,000,its over 250,000 now .

It is my understanding that if the truck is only used for that business you can write off 100% of the cost of the truck. There is also a weight restriction of 6,000 pounds so it has to weigh that much to make the cut.
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The little that I've looked at leasing, mileage was the problem. Several hundred dollars/month only got you a 1000 miles (actually 12,000/year). Since I drive about twice that and would pay extra for it, the cost was too high.

In Canada you should be able to write off your truck and related expenses. It is a matter of keeping a log book. EVERY time you get in your truck, record the mileage start, destination, pupose, ending mileage.

CCRA considers that vehicle use of over 80 % for business allows you to write off 100 % of the expenses. But you have to maintain the log book and make it available for review. GST, purchase, repairs, maintance, fuel, car washes, etc. qualify. Maybe even PST in Ontario.

Having a car in the personal inventory helps too, as all personal mileage is done by the car.

I new I was missing something. Having never leased it sounded pretty darned good but I guess that is off the table. I would scream if I had to hand it back and pay penalties.

NOt sure about elsewhere...

But here in Washington because I am unable to have enough repairs and maintenance and fuel to reach the standard deduction, I take mileage. It is 47.5 cents per mile. I only have to track my mileage. It is more the the S.D. anyways!

Tony

THamilton wrote:
Tony, do I understand this correctly? You get a 47.5 cents per mile deduction from the state tax on top of the 50 cent per mile deduction from the IRS?

Regards

I might have the two mixed up and I believe they raised it to 50 cents a mile for this year.

This is why I have an accountant!

Thanks,
Tony