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I have to use my car for employment purposes. What are the tax consequences of buying versus leasing?

April 26, 2017buying car consequences employment leasing purposes tax versus

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I have to use my car for employment purposes. What are the tax consequences of buying versus leasing?

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If you buy your car, you can deduct capital cost allowance at the rate of 30% per year (15% in the first year). You cannot claim CCA to the extent that the cost of your car exceeds $30,000, plus GST/HST/PST. You can also only claim interest charges up to a maximum of $10 per day. If you lease the car, you can deduct your lease payments up to a maximum of $800 per month, plus GST/HST/PST. In either case, you must prorate the total amount by the ratio of employment use to total use.