June 19, 2019

Budget change could offer sizable tax savings on a new car – The Globe and Mail

If you’re interested in purchasing a new car, specifically a zero-emission vehicle, then you may be able to take advantage of proposed tax provisions announced in the 2019 federal budget. To be eligible, the vehicle will need to be used for business purposes, and you can either own the business, be a partner or an employee who uses their own vehicle for work. If you qualify, you can deduct the full cost of the vehicle (up to $55,000 plus sales taxes) in the year of purchase until 2023. The vehicle must be new, and fully electric, a plug-in hybrid (with a batter capacity of at least 15 kWh), or fully powered by hydrogen. Be aware that there is additional criteria and rules, so be sure that you follow all of them in order to get your deduction at tax time.

“The 2019 federal budget proposes to allow an enhanced deduction for capital cost allowance (CCA, which is depreciation for tax purposes) if a zero-emission vehicle is purchased for work purposes.”

Read more: https://www.theglobeandmail.com/investing/personal-finance/taxes/article-budget-change-could-offer-sizable-tax-savings-on-a-new-car/

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