Truck Purchase – Corporate (by Shareholder)

Tax Topics
1

Working on a GST/HST return (long overdue - period ending April, 2025). Taxpayer only became responsive after receiving a CRA notice to file his GST/HST return. Taxpayer has completed the bookkeeping. I’m now down to the final checklist items before the GST/HST filing.

Please see facts and my conclusion below regarding truck:

Facts:

  • 2024 Chevrolet Silverado 1500

  • 100% for business

  • Extended cab pick-up truck used to transport equipment/tools

  • Purchased in owner’s personal name (he acknowledged the mistake not to be repeated with future vehicles)

My conclusion:

  • Given the current financing and CCA Class 10 - my approach is to claim all related vehicle expenses through the corporation (under the beneficial use rationale) without recording the asset on the balance sheet or claiming CCA. Once financing is complete, ownership can be transferred to the corporation via the tax‑free transfer form for assets moved from an individual to a controlled corporation.

  • No ITC will be claimed, as the truck was purchased in the shareholder’s personal name.

Does this align with how others would approach the situation?

2

I might consider utilizing c/km (HST incl) as the basis for expensing it through the corp. for the time being?

1 Like
3

Exactly. That way he can also claim the HST on the mileage.

1 Like
4

@healthymanccc I would agree with @Rein and @LMK. Claim the annual mileage on the vehicle at the CRA approved rates and claim GST/HST ITC on the amount of the claim.

1 Like
5

@LMK @Rein @obhorst Thank you all for the helpful replies. I’ve decided to take your direction.

6

Just to clarify, the GST/HST is included in the allowance. Don’t calculate it on top of the mileage allowance.

1 Like