07/30/2025
Lease vs. Buy Your Business Vehicle-
🚗 Leasing
✅ Deduct monthly lease payments (CRA max $1,100/month + tax)
✅ Easier cash flow – smaller upfront cost
✅ Good if you upgrade vehicles every few years
⚠️ Lease payments aren’t building equity – at the end, you don’t own the car
🚙 Buying/Financing
✅ Claim Capital Cost Allowance (CCA) – 30% declining balance for most vehicles
✅ Deduct interest on a car loan (up to CRA limits)
✅ You own the vehicle – no km limits
⚠️ Bigger upfront cost and slower tax write-offs
💡 Quick Tip:
If you change cars often or want predictable payments → LEASE.
If you plan to keep the car long-term it would make sense to BUY.
📞 Every situation is different book a consultation with Maje Accounting CPA!
🔗 www.majeaccountingcpa.ca
