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

by TurboTax•10• Updated 3 weeks 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

Answer the initial Personal info interview questions if you haven't already. This unlocks 2024 tax return
From 2024 tax return, under Add to your return, enter employment and select Employment Expenses, then select Yes.
At Employment Expenses Profile, 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 Employment Expense Profile, select the boxes applicable to your situation, including Motor Vehicle Expenses.
At Employment Related Driving:
- 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 Motor Vehicle Expenses Summary 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 Employment Expenses, check the box.
At Employment Expenses Profile, select the checkbox for Motor Vehicle Expenses, then continue.
At Employment Related Driving, enter the required info, then continue.
Complete steps as needed and continue to Capital Cost Allowance (CCA). Enter the required info and select Done.
Continue to Employment Expenses Summary, where the amount under Net Deduction will include your CCA claim.