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Intuit

How do I claim CCA on a new vehicle?

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:

  1. Under the Income section of the Personal Tax Profile tab, select Self Employment, then fill out your Self Employment Profile.
  2. Select Continue, then fill out the information for your T2125 Business Statement, and select Continue again.
  3. You will be brought to the Motor Vehicle Expenses Summary page. Select Add a Vehicle for Business Use.
  4. Fill out applicable information on the form provided, then select Done with Auto
  5. You will be re-directed to the Motor Vehicle Expenses Summary page. Select Done with Vehicles.

*Note: easier to complete when enabling "Forms" mode  

  1. Open form T2042, scroll down to Area B, and complete the information under the Details of motor vehicle additions in the year section.
  2. Scroll up to Area A and enter your vehicles class number under the Calculation of capital cost allowance (CCA) claim section
  3. Once both areas have been filled out, the rest of the table fills in automatically
  4. Enter your motor vehicle expenses (such as kilometers driven for income, total kilometers driven, etc), in Chart A - Motor Vehicle Expenses
  5. Once all information has been entered properly, TurboTax will automatically calculate the available CCA for your vehicle

Related information:

How do I find the proper CCA class?

Why isn't CCA being calculated on my forms?

What CCA classes should be used for computer and electronic equipment?

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