Accounting Firm in St. Catharines, Ontario
- Should I Incorporate?
- Should I buy a vehicle in the corporation?
- Should I lease or buy my vehicle?
There are a number of factors to consider such as limited liability, tax savings or deferrals, income splitting, future remuneration options, cost of administrating and future transfer of ownership. Each factor must be reviewed and weighed to determine if now is the time to incorporate. We would be happy to discuss your current and specific facts to help you determine if now is the time.
This depends on how much the vehicle will be used for business verse personal purposes. The more the personal use the less enticing it is to have the vehicle in the corporation. There are both income taxes and corporate taxes to consider. All facts need to be looked at and each case can be different.
The tax considerations are really more about the timing of the tax savings. Lease payments are deductible when made and the HST on the payment is an ITC and therefore recoverable. If the corporation buys the vehicle all the HST is recoverable and a portion of the vehicle is deducted on the tax return each year.