Can my corporation pay for my vehicle?
Yes — the business-use portion. How it works depends on who owns the vehicle, and the logbook is what makes any of it stick.
Vehicle costs are deductible to the extent the vehicle is used for business — and “business use” means client sites, supplier runs, and work travel, not commuting from home to your regular place of work.
Two ownership structures
Corporation owns the vehicle: it deducts operating costs and claims capital cost allowance (within the limits for passenger vehicles) — but your personal use becomes a taxable benefit on your T4, which is where many setups quietly go wrong. You own the vehicle: the corporation reimburses you per business kilometre at CRA’s prescribed rates, tax-free to you and deductible to it. For most owner-managers with mixed use, the per-kilometre route is simpler and cleaner.
The logbook is the whole game
Every vehicle claim survives or dies on records: date, destination, purpose, kilometres. CRA reviews vehicle expenses constantly because owners round up. A simple tracked log turns an audit question into a non-event.
This is general information, not tax advice for your situation. Book a call and a Canadian accountant will give you the answer for your business.
Common questions
Should my corporation buy my truck or should I own it personally?
It depends on business-use percentage, the vehicle's cost, and how much personal driving you do — a corporately owned vehicle with heavy personal use creates a taxable benefit that can erase the advantage. Run the numbers with your accountant before the purchase, not after.
Is driving from home to my shop deductible?
No — travel between home and a regular place of work is personal commuting. Site-to-site travel, client visits, and supplier runs are the deductible kilometres.