Commercial Vehicle Write-Off & Tax Strategy Engine
Model CRA Class 10 vs. 10.1 luxury limits, IRS Section 179 / 6,000+ lbs GVWR rules, and compare putting the asset on the corporate balance sheet against tax-free mileage reimbursement.
Year 1 Corporate Tax Cash Saved
$1,820
Direct tax liability reduction from Year 1 asset depreciation write-off.
Year 1 Total Asset Write-Off
$14,918
Warning: $39,000 disallowed above statutory passenger cap.
Tax-Free Mileage Alternative
$16,380
Annual tax-free cash pulled out of the corporation at 24,000 km.
1. Asset Acquisition
2. Statutory Class & Specs
3. Mileage Reimbursement Model
If purchased personally, the business pays you $16,380 in non-taxable cash each year, completely bypassing corporate standby charges and operating expense benefit rules.
Executive Write-Off Strategy Analysis
Strategy A: Company-Owned Asset
- • Immediate Year 1 Corporate Tax Relief: $1,820
- • Year 2 Expected Tax Relief: $667
- • Fuel, repairs, insurance, and lease interest paid directly by company accounts.
- • Risk: Any personal mileage triggers taxable shareholder standby charge benefits on T4/W-2.
Strategy B: Personal Ownership + Tax-Free Allowance
- • Annual Tax-Free Cash to Shareholder: $16,380
- • Corporate Tax Deduction on Allowance: $1,998
- • Zero taxable standby charges or operating benefit compliance drag.
- • Verdict: If vehicle is subject to Class 10.1 or Section 280F luxury caps and business use is under 70%, this option frequently yields superior net wealth.
Need to evaluate commercial freight or full fleet operations?
Run complete operating ledgers including diesel burn, driver compensation, CVOR compliance, and tire amortization.