lynnkiara
New Member

I purchased a motor vehicle in 2023 that qualifies for DIEP. Total cost is $86,000 but Turbo Tax only allows me to expense $40,320 of CCA. Why not the full 100%?

 

Self-employed

It depends on when you bought this vehicle, did you buy it in the middle of 2023, because the amount is pro-rated with the period for the vehicle used in a particular year.

 

Thank you for choosing TurboTax.

Self-employed

A vehicle is a capital asset. You can only claim 30% per year on the diminishing balance. This vehicle might also be considered a class 10.1 rather than a class 10. If it qualifies as a class 10.1 there are limits on the cost of the asset before depreciation. You should contact CRA to ensure you have the correct rate class. [phone number removed]

 

Also it must be used only for business or it will be a pro-rated amount of depreciation for personal use.