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Lev
Lev, Tax Advisor
Category: Canada Tax
Satisfied Customers: 28867
Experience:  Taxes, Immigration, Labor Relations
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I am a owner of corporate company.my car is in my name can I

Customer Question

I am a owner of corporate company.my car is in my name can I claim depreciation interest hst. Or do I need it to be in company name. Insurance is in my name but insured as business use. I have RN number since I have trailer in company name. The vehicle is brand new but loan is in personal name but paid deposit out of business account but transfered some of the money from my personal. If I switched car to company do I pay hst on sale?
Submitted: 12 months ago.
Category: Canada Tax
Expert:  Lev replied 11 months ago.

Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property.

Expert:  Lev replied 11 months ago.

In order for a taxpayer to be allowed a depreciation deduction for a property, the property must meet all the following requirements:

  • The taxpayer must own the property. Taxpayers may also depreciate any capital improvements for property the taxpayer leases.
  • A taxpayer must use the property in business or in an income-producing activity. If a taxpayer uses a property for business and for personal purposes, the taxpayer can only deduct depreciation based only on the business use of that property.
  • The property must have a determinable useful life of more than one year.

So - regardless if the property is owned by you personally or by the corporation - if that property is used for business - it may be depreciated.

However - if the property is owned by you personally - you personally as an owner may deduct depreciation,

but if the property is owned by the corporation - only the corporation may claim depreciation deduction.

Let me know if you need any help with reporting.