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Level 3
posted Feb 26, 2020 1:32:09 AM

turbo tax self employed may have errors calculating 10.1 vehicles for CCA if they costed more than 30k

I am not sure if the turbo tax is properly calculating my CCA allowed amount. My truck was bought (brand new in feb 2019) its class 10.1. for $50,224.24 business use was calculated at 45.8227% and I can actually move the CCA amount UP but eventually when testing to see how hi I can go it says "Your CCA claim cannot be greater than $6,990.25. The CCA deduction for your asset is limited to 30.00% of your UCC opening balance." IS this actually correct? I coulda sworn I read somewhere that it is only 15% allowed for first year? and it will only allow $30,000 max, meaning my $50,224.24 is making the turbo tax software make errors in my return? My return is bigger if I can actually claim 30% so I really need to know if the turbo tax software is correct or making errors?

0 2 1118
2 Replies
Level 3
Feb 26, 2020 1:39:37 AM

I am wondering if it has something to do with me clicking the "claim all" cuz if I dont it then says its a little over 2k. But also I wonder if it has to do with my allowable motor vehicle expenses which are "$3,755.73" But that isn't cca? so something must be wrong with this software. 

Level 3
Feb 26, 2020 11:08:20 AM

I think I found my answer on this page. The first year you can claim 30% using the Accelerated investment incentive? Hope this post helps someone else.

 

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/accelerated-investment-incentive.html