So the car was initially recorded as a fixed asset (10K) and depreciated over the years down to $490. Since I bought a new car (37K) this fiscal year I need to remove the old car from the fixed assets list. My plan is to buy back the car by paying to the company the current value of the car.
How do I show these transactions in Turbotax?
My fixed assets Car records look like this:
Motor vehicle 37K
Accumulated amortization for Motor Vehicle -5085
Do I need to show the other old vehicle as well? At the moment when I entered the $490 value as proceeds of disposition in the S8Class tab everything changed to zero there excepting the UCC start of the year and the Proceeds of disposition.
Where do I record the $490 that I paid to the company for the old car?
And since we are here I have another question related to the above: in the assets section the car is registered with 37K. Available for depreciation are 33900 (30K+GST) what happens with the difference between 37K and 33.9K when the car becomes old and beyond any use and I need to scrapp it? Will it still be on my asset list for ever?
Hello,
This is more of an accounting question and I do not wish to lead you in error, my suggestion would be to ask CRA tax tip line at 1-800-267-6999 which forms to use, if after acquiring this information you need assistance inputting this information into the software then contact us at 1-866-438-8020.