If you run an incorporated business, vehicle tax planning can get confusing, and costly if you don’t understand the tax rules. The answer changes depending on who owns the vehicle.
If the corporation owns or leases it, personal driving can create a taxable benefit to the owner. If you own it personally, the cleaner route is often a reasonable mileage allowance or a documented reimbursement for business use.
In this in-depth blog post we cover:
how CRA separates business driving from personal driving
what happens when you own the vehicle personally and use it for business
standby charge and operating expense benefit
CRA mileage allowances, reimbursements, and T2200 issues
record-keeping and common mistakes
…and more!
Let’s dive in!
Power to you,
Think Team 🙏
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