Can I claim a second motor vehicle in my 2017 that I used for business using TurboTax ?

I used a vehicle for business travel and i had to buy a new vehicle, all in 2017. How do I claim expenses, CCA, etc on the second vehicle as TurboTax looks like it is set up to enter only one vehicle information ?

Answer

Here is how to claim CCA on more than two vehicles being used as business expense (Form T2125). Please scroll to the bottom for instructions for the Forms Method:

To enter more than two vehicles onto the T2125 - Statement of Business Activities, you will need to enter the information onto a second T2125.

Claim CCA on a second vehicle: EasyStep Interview, TurboTax Online

Claim Capital Cost Allowance (depreciation) for equipment, motor vehicles, or buildings used for your business in the Self-employment section of the Interview.

To enter the vehicle CCA amounts into your Business forms, you need to ensure the Business forms are available in your interview. Please follow the steps below.

  1. Click the Personal Profile Tab. On Page 1, choose YES for the question Did you work in (Tax Year)?
  2. Check the box for: I was Self Employed. This will add the Business Income section into the QuickTax interview. You don't need to choose anything else about the business at this moment.
  3. Proceed through the Income section of the Tax Return interview until you reach the page titled: Your Self-employment Profile for (Tax Year)
  4. Check the box for the type of Business Income you need to report. If you click on the type of business, QuickTax will show you a description of the type of income associated with that type of Business.
  5. The box you check will determine the form you enter business income on. The forms are:
    • Professional - T2125: Statement of Professional Activities
    • Commission - T2125: Statement of Commission Activities
    • Farming - T2042 Statement of Farming Activities
    • Fishing - T2121: Statement of Fishing Activities
    • Other type of business - T2125: Statement of Business Activities
  6. Click Continue once you have selected your income type to proceed with filling in your Business income, expenses, and CCA amounts.
  7. Income and business expenses will be entered on the first page of the Business Statement. Click Continue on Page 1 to move on to the Capital Cost Allowance sections of the form.
  8. In the Additions, Dispositions, and UCC Start of Year sections, enter your CCA information, specifically the first vehicle information. TurboTax calculates your CCA claim and enters it on the appropriate business form.
  9. When you are ready to enter the second vehicle, you need to create a second T2125. On the Multiple Business Activities, click YES, but only enter your Business Identification Information and the 2nd vehicle amounts

Claim CCA on a second vehicle: Forms Method (CD/Download only)

  1. Click on the Forms button at the bottom of the screen, then select Form lookup....
  2. In the Keyword to search for box, type T2125. Select the type of business form you require.
  3. In the Forms field select T2125(2), then click OK.
  4. Enter your business information and vehicle expenses on the second T2125. Nothing else needs to be entered on the second form.

 


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