I've tried entering 2 vehicles, but TT seems to be calculating a reduced CCA amount for one of the vehicles, and nothing for the other.
Vehicle #1
- Purchased Feb 2016 for $42,554 ($38,026 before tax)
- Used from June-Dec 2016 for business
- The field for CCA amount says I can only claim $1,900.12 when UCC amount was entered as $42,554
Even if I calculated this as UCC $33,600 ($30K + GST/PST), wouldn't it be:
$33,600 / 2 = $16800
$16,800 / 12 months = $1400
$1400 x 6 months (June-Dec) = $8400
$8400 @ 30% = $2520
Vehicle #2
- UCC at beg. of year = $705.89
- Used from Jan-June (The car broke down, and I transferred title/ownership of car for $0. Was told by an accountant to record disposing of it for $1.)
- The field for CCA amount (which TT is supposed to automatically populate) was blank, but allows me to enter this amount manually: $105.89
$705.89/12 months = $58.82
$58.82 x 6 months (Jan-June) = $352.95
$352.95 @ 30% = $105.89
1) Why is TT coming up with $1,900.12 for V#1, and blank for V#2?
2) Does the order in which I list the vehicles matter?
3) Also, I don't have business partners, but when I enter vehicles as "for my usage only" instead of "used by all partners", my expenses don't seem to be accounted for.
Please advise!
Thanks in advance.
There are several ways this can go sideways. If vehicle #1, is a passenger car, you will be in class 10.1 which limits the cost of the vehicle to $30,000 plus taxes.
If it is a work truck, you would go with class 10 usually. Either class has to go into additions not UCC which limits the CCA to 50% the first year. Called the half year rule
Plus there is a calculation happening based on the business versus personal use:
Example per CRA
Nadir owns a financial consulting business. He bought a
car in 2016 for personal and business use. The car cost
$20,000, including all charges and taxes. He includes the car
in Class 10. His business use this year was
12,000 kilometres of the total 18,000 kilometres driven. He
calculates his CCA on the car for 2016 as follows:
He enters $20,000 in column 3 and column 5 of Part 12.
Nadir also enters $20,000 in column 3 of Part 11. By
completing the other columns in the chart, he calculates
CCA for the year of $3,000. Because Nadir used his car
partly for personal use, he calculates his CCA claim as
follows:
12,000 (business kilometres) × $3,000 = $2,000
18,000 (total kilometres)
Nadir enters $2,000 at line 993
There are several ways this can go sideways. If vehicle #1, is a passenger car, you will be in class 10.1 which limits the cost of the vehicle to $30,000 plus taxes.
If it is a work truck, you would go with class 10 usually. Either class has to go into additions not UCC which limits the CCA to 50% the first year. Called the half year rule
Plus there is a calculation happening based on the business versus personal use:
Example per CRA
Nadir owns a financial consulting business. He bought a
car in 2016 for personal and business use. The car cost
$20,000, including all charges and taxes. He includes the car
in Class 10. His business use this year was
12,000 kilometres of the total 18,000 kilometres driven. He
calculates his CCA on the car for 2016 as follows:
He enters $20,000 in column 3 and column 5 of Part 12.
Nadir also enters $20,000 in column 3 of Part 11. By
completing the other columns in the chart, he calculates
CCA for the year of $3,000. Because Nadir used his car
partly for personal use, he calculates his CCA claim as
follows:
12,000 (business kilometres) × $3,000 = $2,000
18,000 (total kilometres)
Nadir enters $2,000 at line 993
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