Should I lease or buy my vehicle?
The tax considerations are more about the timing of the tax savings. Lease payments are deductible when made, and the HST on the payment is an input tax credit (ITC) and is recoverable. If the corporation buys the vehicle, all the HST is recoverable, and a portion of the vehicle is deducted from the tax return each year. Again, each case is different and requires a personalized approach.