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Don’t Buy A Car In 2026 Until You Learn CRA’s Rules
Buying a car through your corporation doesn’t make it “free.”
And in many cases, it can actually cost you more.
In this episode, we break down one of the most common tax myths among business owners — the idea of the “full write-off.” While it sounds simple, the reality involves strict CRA limits, taxable benefits, and hidden personal tax consequences that most people don’t account for.
We walk through how corporate vehicle ownership actually works, where the numbers fall apart, and why what seems like a smart tax move can quickly turn into an expensive mistake.
In this episode, we break down:
• Why a corporate vehicle is not a “full write-off”
• How CRA caps limit deductions on purchases and leases
• Why personal use creates taxable benefits
• How standby charges increase your personal tax bill
• Leasing vs. buying — and how each impacts taxes
• Why mileage reimbursement is often the simpler, more efficient strategy
Don’t assume the government is paying for your car.
Watch this before you sign anything — it could save you thousands.
Links:
Instagram: @advisorstablepodcast
LinkedIn: The Advisors Table Podcast
Looking for trusted tax advice?
Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group.
Email: [email protected]
Website: cedargroup.ca
Subscribe if you want practical breakdowns of real tax scenarios.
Comment below — have you ever considered buying a car through your corporation?
Timestamps:
00:00 – BMW Write-Off Myth Explained
02:16 – Company Cars & Hidden Tax Costs
04:14 – 2026 Vehicle Write-Off Limits & Caps
05:23 – Lease Payment & Interest Deduction Limits
06:36 – HST Recovery Rules for Company Cars
08:15 – Employee Taxable Benefits on Luxury Vehicles
09:37 – Standby Charge: 2% Monthly Tax Rule
11:55 – Operating Cost Benefit & $0.34/km Rule
14:22 – Why Company Cars Can Become More Expensive
15:24 – Leasing a Vehicle Through a Corporation
18:12 – Paying Your Own Gas & Repair Costs
19:01 – Reducing Taxable Benefits With Business Use
22:17 – CRA Logbook Requirements & Vehicle Audits
25:09 – Avoiding Taxable Benefits the Right Way
28:12 – Trades Workers, Pickup Trucks & On-Call Use
31:01 – Shareholder Benefit Risks & CRA Penalties
34:02 – EV Incentives & Corporate Tax Advantages
36:08 – Using Your Personal Vehicle for Business
38:23 – Real Client Example: Mileage Reimbursement Strategy
40:04 – Final Thoughts: Calculating the Best Car Ownership Structure
View all episodes
By AdvisorsTablePodcastBuying a car through your corporation doesn’t make it “free.”
And in many cases, it can actually cost you more.
In this episode, we break down one of the most common tax myths among business owners — the idea of the “full write-off.” While it sounds simple, the reality involves strict CRA limits, taxable benefits, and hidden personal tax consequences that most people don’t account for.
We walk through how corporate vehicle ownership actually works, where the numbers fall apart, and why what seems like a smart tax move can quickly turn into an expensive mistake.
In this episode, we break down:
• Why a corporate vehicle is not a “full write-off”
• How CRA caps limit deductions on purchases and leases
• Why personal use creates taxable benefits
• How standby charges increase your personal tax bill
• Leasing vs. buying — and how each impacts taxes
• Why mileage reimbursement is often the simpler, more efficient strategy
Don’t assume the government is paying for your car.
Watch this before you sign anything — it could save you thousands.
Links:
Instagram: @advisorstablepodcast
LinkedIn: The Advisors Table Podcast
Looking for trusted tax advice?
Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group.
Email: [email protected]
Website: cedargroup.ca
Subscribe if you want practical breakdowns of real tax scenarios.
Comment below — have you ever considered buying a car through your corporation?
Timestamps:
00:00 – BMW Write-Off Myth Explained
02:16 – Company Cars & Hidden Tax Costs
04:14 – 2026 Vehicle Write-Off Limits & Caps
05:23 – Lease Payment & Interest Deduction Limits
06:36 – HST Recovery Rules for Company Cars
08:15 – Employee Taxable Benefits on Luxury Vehicles
09:37 – Standby Charge: 2% Monthly Tax Rule
11:55 – Operating Cost Benefit & $0.34/km Rule
14:22 – Why Company Cars Can Become More Expensive
15:24 – Leasing a Vehicle Through a Corporation
18:12 – Paying Your Own Gas & Repair Costs
19:01 – Reducing Taxable Benefits With Business Use
22:17 – CRA Logbook Requirements & Vehicle Audits
25:09 – Avoiding Taxable Benefits the Right Way
28:12 – Trades Workers, Pickup Trucks & On-Call Use
31:01 – Shareholder Benefit Risks & CRA Penalties
34:02 – EV Incentives & Corporate Tax Advantages
36:08 – Using Your Personal Vehicle for Business
38:23 – Real Client Example: Mileage Reimbursement Strategy
40:04 – Final Thoughts: Calculating the Best Car Ownership Structure