Hello,
I’m using Turbotax 2017 and I have business income, so I have to complete federal form T2125B1.
In the form T2125 B1, I have to complete Area “A” – Calculation of Capital Cost Allowance (CCA) claim –
the part for motor vehicles.
The vehicle is class 10 and for this class the rate is supposed to be 30%.
In the column class I entered 10 and in the column “UCC Start of Year” I entered 1000 CAD.
Turbotax displays 30 in the column Rate.
The problem is that Turbotax does not actually calculate 30% from the amount I entered in the column “UCC Start of Year”. Although I see on the screen that in the column Rate the value is 30, the result in the column “CCA for Year” is 274.52 CAD (it should be 300.00 CAD). That means TurboTax is calculating CCA for the year as 27.452% not 30% from the “UCC Start of Year”.
Why CCA is not calculated correctly?
Is this a TurboTax bug or there is a change in the rules CCA is calculated?
I checked in TurboTax 2016 the CCA is calculated correctly - 30%!
Thank you for your help!