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Mar 13, 2019 2:46 am
Hi, Just wondering if I can take out an interest free loan from my corporation to purchase a vehicle for my Corporation and Personal use. Thks,
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Mar 14, 2019 2:40 pm
A corporate employer can make a loan to an employee to purchase a vehicle to be used by the employee for business purposes. The prescribed rate of interest (2%) should be charged on the loan. As such, you must be an employee of your corporation to qualify. Otherwise, you must include the shareholder loan in your income.