Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 

If you can only put 30000$ plus taxes as a 10.1 and you sell it 36000$ even though you really paid 40000$ do u have a gain anyway?

 
1 Reply

If you can only put 30000$ plus taxes as a 10.1 and you sell it 36000$ even though you really paid 40000$ do u have a gain anyway?

You actually don't have a gain (or a recapture as CRA calls it) for class 10.1 

Here's how class 10.1 works: 

  • In the year of disposal of a class 10.1 vehicle, 15% CCA may be claimed. 
  • TurboTax will calculate this amount for you based on the UCC you have entered, not the proceeds of the sale.

Example: You sold your Class 10.1 vehicle with an Undepreciated Capital Cost of $19,000 for $36,000, your CCA claim for the year will be $2,850. Screenshots below.

More information found here in paragraph 1.104 to 1.106 

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-fol...