From 2012 to 2017 I have net losses from small business, no claim CCA for vehicle to increase lossesm but 2018, there is a net profit from business.

[atefmitri]

2012 vehicle cost $53,200 without Hst, no CCA from 2012 to 2017 because net losses before CCA

2018 How much CCA and how to claim previous losses from CCA

[TurboTaxKim · Accepted solution]

I may have confused you with my previous answer and I apologize if I did. Here are some points that you need to remember and the end result will see you getting a substantial deduction against your current year business profit.

• You are claiming "Capital Cost Allowance" on your vehicle, not a Capital Loss. The CCA that you did not claim in previous years cannot just be "carried over" as a Capital Loss. 
• If you had chosen to claim the CCA in previous years, this would have increased your loss each year, been applied against your other income, therefore leaving you with zero for a carry forward of Non-Capital Loss.
• CRA has limits on vehicles costing over $30,000, you are not able to claim depreciation on the full $53,200 you paid. This is a Class 10.1 vehicle and you are only allowed to claim a percentage of $30,000 + tax.
• As your vehicle was first used for business purposes in 2012, and you haven't claimed any CCA on it ever, you are going to be claiming 30% of $33,900 as a deduction this year. (This is the maximum allowed and the half-year rule does not apply as this is an "existing asset", not an addition).

When you make your entries in TurboTax, you will enter a UCC amount of $33,900 under Class 10.1. The software will calculate the correct percentage and apply it according to the KMs you have entered for business use. You will then have a UCC amount carried forward to use next year. 

I've attached a screenshot, as well as a great TurboTax Tip on CCA. Hope this clears things up for you. 

https://turbotax.intuit.ca/tips/what-is-capital-cost-allowance-2016

[TurboTaxKim]

For the losses you incurred in your small business, have you filed this information on your tax return each year by completing the T2125 Business Statement? 

• If "yes", then did you have other income to which the losses may have been applied?  Or does your Notice of Assessment from CRA show that you have a "Non Capital Loss" available?

• If "no" then you will need to file adjustments to each tax year in which you wish to claim the business loss. When filing an adjustment that does involve claiming a loss, be sure to have all your documents and receipts available as CRA will likely request you submit them to support the claim. 

[atefmitri]

Losses from 2012 - 2017 claimed by other income only CCA didn't claimed - as CCA considered as losses why not claim as carry forward capital losses to be claim in 2018
As 2018 FMV 10,000 how to claim the different between capital cost 53,200 and FMV 10.000 - 42,200 losses how to claim it?

[TurboTaxKim]

You will use the FMV of the vehicle the first year it was used for business purposes.  You are not required to claim CCA, and if you do not, then the value carries forward until if and when you do claim CCA.  So the FMV of the vehicle in 2012, when it was first used for business purposes, is what will have carried forward until the current tax year. 

Passenger vehicles costing greater than $30,000 are each in a separate class 10.1, so your UCC would be $30,000 + the applicable taxes for your province. (Remember: do not include the GST/HST if you are a registrant and already claimed any Input Tax Credits).