To claim Capital Cost Allowance (CCA) on a vehicle, you must first determine if you meet the required eligibility for either a commissioned or a salaried employee, or as an employed musician.
While you may not claim the total cost of property – such as a vehicle or instrument used to earn your income – you may deduct a percentage of that property’s costs.
How to enter CCA for new vehicles:
- Under the Income section of the Personal Tax Profile tab, select Self Employment, then fill out your Self Employment Profile.
- Select Continue, then fill out the information for your T2125 Business Statement, and select Continue again.
- You will be brought to the Motor Vehicle Expenses Summary page. Select Add a Vehicle for Business Use.
- Fill out applicable information on the form provided, then select Done with Auto
- You will be re-directed to the Motor Vehicle Expenses Summary page. Select Done with Vehicles.
*Note: easier to complete when enabling "Forms" mode
- Open form T2042, scroll down to Area B, and complete the information under the Details of motor vehicle additions in the year section.
- Scroll up to Area A and enter your vehicles class number under the Calculation of capital cost allowance (CCA) claim section
- Once both areas have been filled out, the rest of the table fills in automatically
- Enter your motor vehicle expenses (such as kilometers driven for income, total kilometers driven, etc), in Chart A - Motor Vehicle Expenses
- Once all information has been entered properly, TurboTax will automatically calculate the available CCA for your vehicle