Yes by mileage.
I don't really know how to explain this in layman's terms but here is my attempt. Whatever percentage of mileage you drive for business is multiplied by the cost of vehicle and that becomes your cost basis for the auto. You can take a section 179 deduction on your cost basis of the auto. This will change on a yearly basis depending on your personal/business usage. If it decreases you have to recapture some of what you previously took a 179 deduction on. You are required to keep a mileage log detailing business vs. personal usage.
In theory, you could lie and say that it is 100% business usage and then deduct the full price of the vehicle and drive it around Canada all you want. Just hope that you don't get audited, but chances are that you won't.
I don't really know how to explain this in layman's terms but here is my attempt. Whatever percentage of mileage you drive for business is multiplied by the cost of vehicle and that becomes your cost basis for the auto. You can take a section 179 deduction on your cost basis of the auto. This will change on a yearly basis depending on your personal/business usage. If it decreases you have to recapture some of what you previously took a 179 deduction on. You are required to keep a mileage log detailing business vs. personal usage.
In theory, you could lie and say that it is 100% business usage and then deduct the full price of the vehicle and drive it around Canada all you want. Just hope that you don't get audited, but chances are that you won't.