Equipment Financing — Should You Lease Or Buy For Your Business

Equipment drives productivity—but choosing whether to lease or buy impacts taxes, cash flow, and compliance. Mackisen CPA Auditors Montreal helps Canadian businesses decide the most profitable and compliant financing strategy through CPA-supervised cost-benefit analysis and CRA-aligned reporting.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 20(1)(a): Allows capital cost allowance (CCA) on purchased assets.
Income Tax Act (Canada) Section 9: Defines income reporting based on asset use.
Taxation Act (Quebec) Section 34: Requires asset reporting for QST purposes.
CPA Canada Handbook Section 3061: Defines accounting standards for leases and purchases.
Financial Administration Act (Quebec): Requires proper asset record maintenance.

Key Court Decisions
Beaudoin v. The Queen (2020): Denied CCA claims for improperly reported leased assets.
Lincora Group v. Quebec (2019): Penalized companies for missing capital asset records.
Simard Beaudry Construction v. Canada (2019): Accepted CPA-certified asset schedules as compliant.
Tremblay Holdings v. The Queen (2021): Highlighted need for consistent lease disclosure.
Royal Bank v. Canada (2019): Approved financing based on CPA-verified asset valuations.

Why CRA Evaluates Lease vs. Purchase Closely
CRA examines asset deductions and lease payments for accuracy. Misclassification can lead to denied CCA claims or reassessment. Mackisen CPA Auditors Montreal structures transactions and records to ensure audit-ready compliance and optimal financial performance.

Mackisen Strategy
Financial Comparison — Analyze long-term costs of leasing vs. buying.
Tax Optimization — Calculate CCA deductions or lease expense benefits.
Cash Flow Planning — Align asset payments with business liquidity.
Asset Recordkeeping — Maintain detailed documentation for CRA and Revenu Québec.
Financing Coordination — Assist in loan or lease negotiations with banks.
CPA Review — Certify reports for lenders, investors, and auditors.

Powering Client Needs and Equipment Growth
A Montreal construction firm saved 18 percent in taxes after Mackisen advised leasing heavy equipment. A Quebec medical clinic improved cash flow by structuring asset purchases strategically. A Toronto logistics company obtained faster loan approval through CPA-certified asset documentation.
How Mackisen Clients Benefit

• Optimal decision between leasing and buying

• Reduced taxes and improved liquidity

• CPA-certified documentation for CRA

• Transparent asset reporting for lenders

• Long-term financial strategy alignment

Common Questions
Is leasing tax-deductible? Yes, when used for business operations.
Can I claim depreciation on leased assets? No, only on purchases.
Does CRA audit asset purchases? Yes, for CCA accuracy.
Can Mackisen help with financing? Absolutely—from analysis to negotiation.
Which is better: leasing or buying? It depends on your cash flow and tax situation—Mackisen helps decide.

Why Mackisen
Mackisen CPA Auditors Montreal delivers clarity in asset financing decisions. Our CPAs analyze every scenario to ensure your equipment strategy maximizes profitability, compliance, and sustainability.