Employment expenses - Two vehicles - Class 10You have changed your vehicle in the tax year, and both vehicles - the old and new - are in the same class of vehicles, namely the cars that cost less than $30,000 before taxes. Both vehicles, old and new, are entered on the same page.
First, you must calculate all the expenses that you've incurred for both vehicles, such as fuel costs, insurance expenses and others. Furthermore, you will have to calculate the total kilometres (KM) travelled in the tax year as well as the number of kilometres travelled for business purposes. To do so, follow the steps below:
1- On the "Left side menu on the Interview tab", select the "Interview setup" and on the right screen, in "Employment and other benefits", check the box for "Employment expenses" and click on "Next" at the bottom of the page.
2- Return to the "Left side menu on the Interview tab" and select the item "Employment expenses" and on the page on the right-hand side, select the type of job expenses that applies to your situation.
3- Complete the page "Employment expenses" according to the information you have. Click on "Next" at the bottom of the page after you've completed the page.
4- On the page entitled "Motor vehicle expenses" click on the plus sign "+" icon to the right of the "Purchased motor vehicle" line, enter the information of your old vehicle as well as all expenses incurred in the taxation year.
5- At the line "Opening balance of the undepreciated capital cost", (the value of the vehicle) enter the amount in column 10 of Part A of the previous year's T777 federal form.
6- In addition, at the line "CCA class of the vehicle" in the drop-down menu, choose, "Class 10 - 30 %".
7- If you received an allowance for the expenses of your vehicle, you must enter the amount on the line "Motor vehicle expenses (excl. CCA & interest)".
8- For the new vehicle you acquired, go to "Vehicle acquisition during the year" section, enter the relevant information in the lines "description and amount of capital additions (other than AIIP)" or "Description and amount of capital additions of AIIP", depending on the qualification of the vehicle.
9- In the section "Vehicle disposed during the year" at the line "If you disposed of the vehicle, enter the amount received", indicate the total amount received in payment. Enter the adjusted cost base of the vehicle sold on the "ACB of the disposition" line.
10- On the line "Did you liquidate all asset in this class?", Answer" No".
11- On the line "Application of half-year rule to current year additions", select "Yes" from the drop-down menu.
12- If you want to limit the CCA, for the line "Limit to the CCA of this vehicle (leave blank for maximum CCA)", enter the desired amount. Otherwise, leave the field blank to obtain the maximum CCA amount.
13- In this case, you must enter the gain separately under the section "Capital gains & ABIL".
14- In this case, return to the "Interview setup" go to the "Investments income and expenses" section, check the box "Capital gain (or losses) and capital gain history" and click "Next" at the bottom of the page.
15- Return to the "Left side menu on the Interview tab" you must enter this gain separately, select the item "Capital gains (or losses) & ABIL" and on the screen to the right, choose "Real estate and other depreciable property", enter the information on the sale of your vehicle.
The program will report the amount on line 9368 of federal form T777 federal, as well as on lines 16 and 41 of Quebec form TP-59.
We recommend that you consult the CRA guide by clicking on the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
NOTE: We suggest you keep a record for each year you claim expenses. Mainly for using your vehicle that statement must set out firstly, total kilometers traveled, and secondly the mileage for your job and all expenses incurred in the tax year.
ID: 20201021111933NA.xml
Webpage: KPA310-20201021111933NA.htm