Quote:
Originally Posted by BenTrovato
Leases are only good if you have a business to write it off against, otherwise your payments are completely lost. The next best bet is to buy 2-3 year old used vehicle with low mileage, when you sell it a year later, the money you've spent on the vehicle subtracted by what you sell it for is a significant savings over the sum of your leasing payments.
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I still think it's better to pay yourself a mileage allowance rather than write off the lease payment. You can pay yourself $0.55 / km for the first 5,000 km of business use and $0.45 km thereafter for legitimate business use. That money is 100% tax free and 100% deductible for the business. You can in fact pay yourself any amount per km, but the business can only deduct up to these amounts.
It's nice because even if you have a beater that you own outright you can still pay yourself the mileage allowance.
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