topic Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% rather than 75%. This is causing a huge difference in the CCA deduction. in Self-employed

CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% rather than 75%. This is causing a huge difference in the CCA deduction.

Cheng42 — Fri, 03 Apr 2026 19:47:23 GMT

Called Turbotax support and spent hours speaking to multiple representatives/tax experts yet none of them have any clue about the tax accounting rules here in Canada. Was promised a callback about getting this fixed but never heard back.

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% rather than 75%. This is causing a huge difference in the CCA deduction.

user17734123570 — Sun, 05 Apr 2026 01:31:34 GMT

I am having the same issue. I have updated the software. I have even deleted the form and restarted and its still the same. Do I just change the amount claimed to 75%?

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

TurboTax_Susan — Mon, 06 Apr 2026 00:25:19 GMT

@user17734123570 Are you using TurboTax Desktop or TurboTax Do It Yourself (Online)? What are you claiming CCA for ex: Self-employment, rental income?

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

user17734123570 — Mon, 06 Apr 2026 01:02:11 GMT

I am using desktop premier. Self employment. for a Class 54 ZEV purchased in 2025 it should an enhanced rate of 75%. It is using a enhanced rate of 100%

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

Cheng42 — Mon, 06 Apr 2026 01:35:04 GMT

I am using the desktop version as well but standard. Everything is updated. Putting only 75% of the cost as CCA will cause the next year to have issues since it will carry forward nothing as your undepreciated cost base so Turbotax needs to actually fix the percentage it's applying.

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

user17734123570 — Mon, 06 Apr 2026 12:49:30 GMT

Agreed it needs to be fixed. Disappointing paying for a product that is not up to date with CRA tax laws. The only work around I can think of is to change the amount of CCA claimed for the year. Not changing the the % in column 20. But if I change the amount in column 21 to reflect 75%, It leaves me the 25% balance in column 22 to claim for next year.

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

Cheng42 — Mon, 06 Apr 2026 14:49:01 GMT

Agreed, and I have spent hours calling them but none of them are familiar with this so my only option was to post here. Just waiting on this to be fixed so I can put away my taxes for the year...Hopefully @TurboTax_Susan can get this resolved soon.

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

TurboTax_Susan — Mon, 06 Apr 2026 20:20:53 GMT

The CCA rate for a Class 54 ZEV in 2025 is not 75%. It's still only 30%, but that 30% is applied to the net addition to the class times a factor of 2 1/3. The factor in TurboTax Desktop comes straight from the CRA's 2025 T2125 form.

For example:

In TurboTax Desktop Premier, I added a Class 54 vehicle that I acquired for $1000 on 01/01/2025 and checked off the option for ZEV. I used the car 100% for business.

In the CCA Table, col. 12 is $1000, col 17 is $2333 (1000 x 2 1/3), and col 19 is $3333. Col 20 is the rate of 30%, and col 21 is col 19 x col 20, which is $1000.

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

Cheng42 — Mon, 06 Apr 2026 23:13:55 GMT

Hi Susan, yes of course class 54 is 30% but the 75% we are referring to is the net enhanced deduction. The factor in Turbotax desktop of 2 1/3 is only applicable to years prior to 2024. For 2024-2027 the factor should be 1 1/2. Anyone who filed using Turbotax desktop submitted incorrect returns if they used the enhanced class 54 deduction in 2024 or 2025 based on the 2 1/3 factor Turbotax is using right now. I'm sure any CPA on your team can confirm this and if not please reference CRA: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html#class54class55

Please look into getting this fixed asap. Thank you

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

TurboTax_Susan — Tue, 07 Apr 2026 00:31:30 GMT

@Cheng42 According to the CRA's 2025 T2125 form: Note 7: Under proposed changes, for ZEVs acquired after 2024 and RIIPs that became available for use in 2025, the relevant factors are 3 (Class 44), 2 1/3 (Classes 43.1, 46, 54, and 56), 1 1/2 (Class 55), 1 (Class 53), 9/11 (Class 50), and 0 (Classes 12, 13, 14, 15, and 59). The factor is 1/2 for any
remaining RIIPs not listed in this note.

The link that you provided was last modified: 2025-06-05

The T2125 was last modified: 2026-02-11

So you may want to let the CRA know that they have information that conflicts with the actual forms on their website.

Re: CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% r...

user17734123570 — Tue, 07 Apr 2026 00:50:19 GMT

But the question is still why is the program calculating the wrong amount? The programs asks when the vehicle was purchased. So Based on that alone it should correct itself to calculate at 1 1/5.

And if we were to override the numbers on the form we will then be ineligible to file through netfile.

So what is the solution?