January 2012 
There are 1 blog entries for January 2012.
Leasing Vs. Purchasing for Small Business
Thursday, January 19th, 2012 at 12:57pm. 440 Views, 1 Comments.
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Leasing An Automobile
The maximum tax deductible amount for an automobile lease is $800 / month + taxes. While this sounds like a very generous limit, there’s a catch. The $800 limit is reduced (through a complex formula) if the manufacturer’s suggested retail price (MSRP) for the automobile is in excess of $40,000 (approximately).
Let’s assume that you have entered into a five year lease for an automobile having a MSRP of $30,000 with a monthly lease amount of $350, including taxes. Therefore, each year you would be entitled to a deduction of $4,200 (i.e. $350 x 12).
Purchasing An Automobile
When purchasing an automobile, the deductible amount (a.k.a. capital cost allowance or CCA) is computed as 30% of the cost…