Do I include the HST when calculating the CCA of a new Cargo Trailer or do I claim the HST when doing my HST report?

[dre361224]

I bought a cargo trailer in 2017 for the storage of all my tools for my contracting business. Do I include the HST paid when calculating the CCA, or do I claim the HST seperately as a ITC when doing my HST report? If it has to be done in the report, do I put the full amount paid, or only the amount equivalent to the CCA calculated?

[nicdebruyn]

Hi there. No you do not include your HST as this is already accounted for in your HST return. The CCA will be on the capital value of your trailer which is the value without HST. If you included your HST here as well you would be double dipping in tax deductions through both CCA and HST

[dre361224]

Thank you for your response. So do I claim the full Hst amount I paid this year, or only a portion every year?

[nicdebruyn]

Yes. You claim full amount in the period you acquired the trailer.