- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Question regarding CCA (Class 10.1).
I understand that the max you can claim is $30,000 + HST. However, if the car value is worth more than that, even after subtracting the allowed depreciation in the first year, what is your UCC starting year 2? Also, is there a limit of what % you can claim for business?
E.g If the car is worth $70,000 but you claim 15% ($10,500) in the first year. In the second year, is your UCC 30,000-10,500 = 19,500 or can you claim your UCC in year 2 is still $30,000?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Self-employed
Hi, thank you for Using TurboTax AnswerXchange
The calculation for the above scenario is shown in a screenshot in the attachment. The depreciable amount is a maximum of $30,000+ HST/GST. The ending UCC is $29,318.62 and that is therefore the opening UCC in the following year. The claim for the year is a maximum of $5,173.88 (for an Ontario resident). The portion of that amount that can be claimed as an expense on a tax return depends how much the vehicle is used for business vs personal. If used 50% for business, $2,586.94 can be claimed.
This follows the Canada Revenue Agency rules. For more information review the following link:
Hope this helps