How do I claim CCA on a new vehicle as an employee?

by TurboTax•1• Updated 1 month ago

You qualify to claim Capital Cost Allowance (CCA) on a vehicle you own:

As a commission-earning employee, if you meet the commission employee conditions
As a salary-earning employee, if you meet the conditions for Allowable motor vehicle expenses for a salaried employee
For more information, see capital cost allowance.

While you can't claim the total cost of the property in the year you bought it, you can qualify to deduct a part of the cost each year over a number of years.

Select your TurboTax product and follow these steps to enter the CCA for new vehicles into TurboTax:

Instructions for TurboTax Online

From the Tax home screen, under Add to your return, enter employment and select Employment Expenses.
At the Employment Expenses Profile screen, select I received form T2200 - Declaration of Conditions of Employment from my employer… If you don’t have the form, you can’t claim employment expenses.
At the Employment Expense Profile screen, select the boxes applicable to your situation, including Motor Vehicle Expenses.
At the Employment Related Driving screen:
- Enter the vehicle info and the mileage driven info.
- Enter the required info under Enter the details of your vehicle if owned (not leased) and you want to claim Capital Cost Allowance (CCA).
- Select Done with Vehicles.
Continue to the Motor Vehicle Expenses Summary screen where you’ll see your CCA claim under CCA For Year.

Instructions for TurboTax Desktop

Select Find and enter employment in the search bar.
Select Employment Expenses and select go.
At the Employment Expenses screen, check the box.
At the Employment Expenses Profile screen, select the checkbox for Motor Vehicle Expenses, then continue.
At the Employment Related Driving screen, enter the required info, then continue.
Complete screens as needed and continue to the Capital Cost Allowance (CCA) screen. Enter the required info and select Done.
Continue to the Employment Expenses Summary screen, where the amount under Net Deduction will include your CCA claim.