I need your help on my corporation tax. I started a corporation (CorporationFOOD) in March 2021 and leased a vehicle. I have NO income at all since I incorporated and I never filed any tax yet. I’m using my personal account to do the monthly car payments.
I have a second corporation, which is my main corporation (CorporationIT) and I have funds in it.
I want to return the car and close CorporationFOOD. My question is, can I use CorporationIT to buy the car from CorporationFOOD and that way I can get the money back from the payments I did on the car from my personal account?
You should talk to an accountant face-to-face. First, returning the car depends on who the lease is with. You need to deal with them to see if they’ll take the car back and cancel the lease. Does the IT company operate an ongoing business that needs vehicle use? Otherwise, you’ll end up with a large taxable benefit each year from the IT company. You could also get rid of the FOOD company by amalgamating the two companies.
I agree with @kevin; you need to find a local accountant to sort this out. We are all busy with paying customers and there is too much information missing for us to give you a fifteen minute free answer.
We use this forum to help out fellow tax preparers/accountants with situations we have not encountered or to see how we could use the software to accomplish our needs.