Trading in a 10.1 vehicle to purchase a new 10.1 vehicle produces a UCC of zero.

[Johnny555]

Ok, I'm trying to calculate what my CCA claim would be if I bought a new vehicle.

I have an old vehicle (class 10.1) with a UCC at the start of the year for around $3,500. I use this vehicle to trade in to purchase a new vehicle (also class 10.1) for $45,000.  The trade in price for the old vehicle is $5,000.  I enter all this information in TurboTax using EasyStep Interview. TurboTax added the $45,000 value as a cost of addition and the $5,000 value as a proceed of disposition.  But this resulted in a UCC at the end of the year for the class 10.1 vehicle to be 0.

This can't be right, how can UCC at the end of the year be 0? A new vehicle was purchased, so there should be some UCC left at the end of the year.  Is it because TurboTax thinks I have no more assets in my class 10.1 after selling the old vehicle for $5000?  Is that why the UCC is zero? 

Is this suppose to be correct? 

[TurboTaxSusan]

The 10.1 class has some special rules, and one of them is that each vehicle must be allocated to a separate class 10.1. So, if you sell a class 10.1 vehicle, that class closes, and a new one opens up if you buy a new class 10.1 car.

Also unique to class 10.1 is that when you close the class, there is no recapture or terminal loss. But you may be able to claim 50% of the CCA that would be allowed if you had still owned the car at the end of the year.

This Canada Revenue Agency (CRA) page has more information on Class 10.1: Part B - Class 10.1

[Johnny555]

When I try to add a new vehicle acquired in TurboTax using easystep interview process it puts the new vehicle into the same class 10.1 as the old vehicle, instead of a separate class 10.1. And then when I sell the old vehicle, that same 10.1 class gets closed and the UCC from the new vehicle is gone.

How do I list a new vehicle in a separate class 10.1 in TurboTax?

[TurboTaxSusan]

Please contact our phone support as they will be better able to assist you. You can use the form on this page to get the right phone number to call: TurboTax Contact Us

[CH625]

Did you get an answer for this I am having the same issue

[neale]

I am having the same issue, I also spoke to Revenue Canada and the way turbo tax is treating the trade in vehicle and new purchase is as if I bought and sold the same vehicle. I have tried assigning a new row for the new vehicle in forms but Turbo Tax keeps putting it in the same row as the original vehicle.

I have called Turbo Tax 5 times now and no one has been able to help me assign the new vehicle as a separate line item.

Please help, I do not want to have to buy another software program to file my taxes...

Thanks