Re: I purchased a motor vehicle in 2023 that qualifies for DIEP. Total cost is $86,000 but Turbo Tax only allows me to expense $40,320 of CCA. Why not the full 100%?
I purchased a motor vehicle in 2023 that qualifies for DIEP. Total cost is $86,000 but Turbo Tax only allows me to expense $40,320 of CCA. Why not the full 100%?
I purchased a motor vehicle in 2023 that qualifies for DIEP. Total cost is $86,000 but Turbo Tax only allows me to expense $40,320 of CCA. Why not the full 100%?
It depends on when you bought this vehicle, did you buy it in the middle of 2023, because the amount is pro-rated with the period for the vehicle used in a particular year.
I purchased a motor vehicle in 2023 that qualifies for DIEP. Total cost is $86,000 but Turbo Tax only allows me to expense $40,320 of CCA. Why not the full 100%?
A vehicle is a capital asset. You can only claim 30% per year on the diminishing balance. This vehicle might also be considered a class 10.1 rather than a class 10. If it qualifies as a class 10.1 there are limits on the cost of the asset before depreciation. You should contact CRA to ensure you have the correct rate class. [phone number removed]
Also it must be used only for business or it will be a pro-rated amount of depreciation for personal use.
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