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 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: 1. Instagram:   / advisorstablepodcast   2. LinkedIn:   / the-advisors-table-podcast   📞 Looking for Trusted Tax Advice? Connect with Sankalp (Sunny) Jaggi, at Cedar Consulting Group 📧 Email: [email protected] 🌐 Website: https://www.cedargroup.ca/ 🔔 Subscribe if you want practical breakdowns of real tax scenarios 👇 Comment below – Have you ever considered buying a car through your corporation? #TheAdvisorsTable #Tax #Cars #WriteOffs #CorporateTax #taxstrategy 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