Electric zero emission vehicle - Class 54You have acquired an electric zero emission vehicle - category 54
Two new CCA classes have been created for zero-emission vehicles acquired after March 18, 2019 and are available for use before 2028.
Class 54 motor vehicles and passenger vehicles excluding taxicabs and automobiles used for lease and rent
The CCA rate for this class is 30% but a higher deduction (up to a maximum of 100%) may apply for certain eligible vehicles acquired after March 18, 2019, and before January 1, 2028 (phase out starting in 2024).
The capital costs will be deductible up to a limit of $55,000 plus sales tax starting in 2019 for zero-emission passenger vehicles. The limit will be reviewed annually, and special rules will apply in the year of disposition for such vehicles where the capital costs exceed that limit.
To claim CCA (capital cost allowance) on this vehicle, follow the steps below:
1. On the "Left-side menu of the Interview tab", select the "Self-employment income" section.
2. Go to the "Motor vehicle expenses" subsection and click on the " +" sign to the right of "Auto purchased".
3. If this is the first year you are claiming CCA on this vehicle, enter the information on the line "Description and amount of capital additions of AIIP" (Accelerated investment incentive property).
Note: For the first-year acquisition leave blank the "Opening balance of the undepreciated capital cost". The program will autofill this field the following year when you carry over your information.
4. Enter the description and amount. The amount includes the full amount paid including the taxes.
5. You may limit the CCA by entering an amount on the line: "Limit to the CCA of this vehicle (leave blank for maximum CCA)".
6. Enter kilometers travelled for business or work and total kilometers travelled. We recommend you keep a log of kilometers traveled and expenses incurred.
7. Claim your expenses under the heading "Motor vehicle expenses incurred".
8. The program will automatically carry over the information into the "T2125 Statement of Business or Professional Activities" Area A column 3 and /or column 4.
9. The CCA will appear on line 9936 of the "T2125 Statement of Business or Professional Activities"
For more information on this topic, please consult the following website:
ID: 20221020153450MA.xml
Webpage: KPA310-20221020153450MA.htm