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ahmedsf2020
Returning Member

Can I increase the CCA of a vehicle to reduce my overall balance due?

I have two self employment incomes. One is UBER driver, the other is TURO car sharing host. can I use the CCA of a vehicle I bought for the car sharing to create a loss in order to reduce tax balance from my UBER income?
8 Replies

Can I increase the CCA of a vehicle to reduce my overall balance due?

No. You can only claim up to the maximum CCA that's calculated for the year.

 

ahmedsf2020
Returning Member

Can I increase the CCA of a vehicle to reduce my overall balance due?

I know but it will create a lose in one business. I have two vehicles one for UBER driver, the other for TURO hosting. Can I use the available CCA of the vehicle on TURO to create a loss in the TURO income in order to decrease my tax balance I owe as UBER driver income?

Can I increase the CCA of a vehicle to reduce my overall balance due?

Yes, for self-employment income, you can use CCA to create a loss.

ahmedsf2020
Returning Member

Can I increase the CCA of a vehicle to reduce my overall balance due?

Vehicle A (UBER driver) I earned net 40,000$. I have to pay 15,000$ income tax.

Vehicle B (TURO host) cost 30,000$. CCA available based on AIIP is 18,000$. Income from vehicle B is only 7,000$.

So when I use the available CCA (18,000$) income for vehicle B becomes -11,000$.

Now the total income becomes 40,000-11,000=29,000$ so income tax I have to pay is 8,000$ only instead 15,000$!

If that is right why they say you can not make capital loss to of set non-capital income?

Can I increase the CCA of a vehicle to reduce my overall balance due?

You will not have a capital loss because you are using CCA to depreciate the asset, not selling it in a capital gain/loss transaction.

 

 

ahmedsf2020
Returning Member

Can I increase the CCA of a vehicle to reduce my overall balance due?

Thanks,

So the example I mentioned in my last message is accepted?

Can I increase the CCA of a vehicle to reduce my overall balance due?

As your file indicates you have purchased Assist & Review you may be best to have your return reviewed by our experts at this time for further directions. Please see our TurboTax FAQ: I’m using TurboTax Live Assist & Review. How do I submit my return for review?

 

Thank you for choosing TurboTax.

ahmedsf2020
Returning Member

Can I increase the CCA of a vehicle to reduce my overall balance due?

I already talked two times to Expert Reviews. They told me they do not know. The second one told me I have to read about it. Then told me if the Turbotax accepted it so its fine!!