Claiming Your Vehicle as a Business Expense
Whether it is traveling to business meetings or picking up clients, if your business is growing and is in need of a means of transportation; here is what you will need to consider before claiming your vehicle as a business expense.
If you own your vehicle, you are able to claim depreciation for 30% of the vehicle’s cost each year under the declining balance method. Of course, the value of your vehicle entirely depends on your business budget. Meaning, if you were to spend $50,000 on a car you would only be able to claim a deduction of $30,000 and the remaining $20,000 would be paid out of pocket.
However, through the federal government’s Incentives for Purchasing Zero-Emission Vehicles (iZEV) program, if you were looking to buy an electric car you would be able to deduct up to $55,000 in the first year.