Why is HST being added to my vehicle CCA?

[dujow]

I bought a truck this year for self employment. I submitted the HST paid through an ITC on my HST remittance and received a refund for the period. 

Now, I have entered the truck value in the CCA section and while it is calculating it correctly, as 15% for the first year, it is also adding 13% HST to it. 

As I understand it, this is double-dipping. I already received back the HST I paid. Now, if I am adding HST again, this is a higher value than I actually paid. What's the deal?

[Delphision · Accepted solution]

Just to confirm that the truck has been added to the additions section.  There are two places in the online version where vehicles can be added as a capital asset.  One is under motor vehicles and the other is part of the T2125 entry that specifies (not motor vehicle). 

Be careful of your class. Vehicles in 10.1, purchased this year and costing more than $30,000 before taxes are applied must be listed separately from class 10 vehicles.  They include GST and PST in the capital cost, however, which the others do not.  If this is what is happening, do not worry about it.  It will be a small part of the CCA  and you are forced to give up some other benefits when listing a class 10.1 instead of 10. 

If there are all vehicle assets in class 10, it will add the amortization together.  Normally, you would add the purchase price of the truck, plus PST, plus any capital repairs or improvements to make it useful for the work required.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/229/cca-dpa/clsss-eng....

[dujow]

Its class 10.. the amount they are saying its CCA is, is exactly 15% of my truck value plus 13% more. Which could only be hst.  Is there an option to tell it to not apply hst?  I hope I dont get audited.

[Delphision]

HST would never get added to amortization at any time.  Try starting again.  Where, specifically, are you adding the vehicle as an asset?  What version and what type of T2125.  Is it professional or other.  I will try to duplicate it if I can.

[zyue123]

Is there a solution about this? I am in similar position as a gst/hst registrant. I don't want the HST being added to the cost

[Delphision]

If this is part of employment expenses you are entitled to GST/HST on your amortization as you are charging basically charging your employer for these amounts.  You will receive a GST rebate that has nothing to do with the fact that you are a registrant.  You will need to report the rebate as income next year.