I earn self-employed commission income. I purchased a hatchback in 2015 for $26,000. I have not claimed CCA ever on this vehicle but have used it for business and personal from day one. My business use fluctuates between 35% and 40% annually. How do I enter CCA information for this vehicle on my 2019 taxes? Should I?
If you have taxes owing, then you claim CCA on your car to reduce them. Since you haven’t made a claim on the car before, but you still owned it, you would enter the purchase cost as your UCC at the beginning of the year (not as a new addition). It would be Class 10, since the cost is under $30,000. TurboTax will calculate the CCA claim for the year, as well as the percentage that you can claim based on your business use.
You can choose not to take the full amount of CCA for the year if you don’t need the entire amount to reduce your taxes payable. It will just stay in as part of your UCC for next year.
I have a similar question ..I have a car that I claimed expenses for in 2018 as I used it partially to manage rental propoerty. I have not claimed any CCA on the car before. I sold the car in 2019 and bought a new car. I am filing my taxes for 2019 and will be claiming expenses on the new car but I also want to claim the CCA for the old car that I sold.
How do I do that?