I may have confused you with my previous answer and I apologize if I did. Here are some points that you need to remember and the end result will see you getting a substantial deduction against your current year business profit.
- You are claiming "Capital Cost Allowance" on your vehicle, not a Capital Loss. The CCA that you did not claim in previous years cannot just be "carried over" as a Capital Loss.
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If you had chosen to claim the CCA in previous years, this would have increased your loss each year, been applied against your other income, therefore leaving you with zero for a carry forward of Non-Capital Loss.
- CRA has limits on vehicles costing over $30,000, you are not able to claim depreciation on the full $53,200 you paid. This is a Class 10.1 vehicle and you are only allowed to claim a percentage of $30,000 + tax.
- As your vehicle was first used for business purposes in 2012, and you haven't claimed any CCA on it ever, you are going to be claiming 30% of $33,900 as a deduction this year. (This is the maximum allowed and the half-year rule does not apply as this is an "existing asset", not an addition).
When you make your entries in TurboTax, you will enter a UCC amount of $33,900 under Class 10.1. The software will calculate the correct percentage and apply it according to the KMs you have entered for business use. You will then have a UCC amount carried forward to use next year.
I've attached a screenshot, as well as a great TurboTax Tip on CCA. Hope this clears things up for you.
https://turbotax.intuit.ca/tips/what-is-capital-cost-allowance-2016
