Tax guides

Deductions and credits

Deductions and credits under Canadian federal and provincial rules.

Deductions and credits

Buy or Lease a Car Through Your Business or Personally?

Log work and personal driving, then compare after-tax costs. A corporation that buys or leases the car pays its costs and may deduct eligible amounts; you pay tax on personal use. If you own the car and work for the corporation as an employee, you pay its costs and the corporation may pay a reasonable work-kilometre allowance. A sole proprietor pays costs and claims eligible business use.

Corporations · Self-employed

Capital cost allowance on equipment, vehicles and buildings

Capital cost allowance (CCA) lets you deduct the cost of income-producing equipment, vehicles and buildings over time. Put each asset in its tax class, determine when it became available for use, and claim up to that year's limit. Land is excluded. Vehicle limits, first-year incentives, rental-loss rules and possible recapture on sale can change the amount.

Individuals · Self-employed · Partnerships · Corporations