Hi, I bought a RV to rent it out this year, and was wondering if I can put that RV as an expense for my business ?
It looks weird cause I made only 5k this year with this and paid this RV 15k, so that's a net income of -10k.
Is that correct ?
Thanks !
Thank you for choosing TurboTax,
As per CRA, you cannot deduct the cost of the vehicle when you calculate your net income for the year.
However, since this vehicle may wear out or become obsolete over time, you can deduct its cost over a period of several years. The deduction is called capital cost allowance (CCA).
If you use your vehicle for both business and personal use you can only claim the percentage of CCA that is directly related to business use. If you use the vehicle 40% of the time to earn income, then you can only claim 40% of the allowable CCA claim for that year.
Please visit our TurboTax article on How Much Capital Cost Allowance Can You Claim For Your Business? to learn more about CCA.
What class of depreciation would an RV fall into in the above situation?
@Cove98 Recreational vehicles can be included under Class 10 for capital cost allowance purposes.
dioria
Level 1
dioria
Level 1
skimmer888
New Member
ududbabaslst
New Member
janellem10000
New Member
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.