Home office expensesYou want to deduct expenses for your vehicle, whether you are self-employed or have employment expenses, please follow the procedure below:
1 - Under the "Left side menu on the Interview tab", select the "Self-employment income" choose the "Motor vehicle expenses" subsection, and located to your right, choose the option "Purchased motor vehicle".
2 - On the first part of the page entitled "Purchased vehicle", enter the "Level at which the expense is claimed" from the drop-down menu to the right. Enter the information about your vehicle. Make sure the appropriate category is selected for the "CCA class of the vehicle". If the value is greater than $30,000 before taxes and fees, the class will be 10.1.
For more information, see the following CRA link.
3 - For the line "Opening balance of the undepreciated capital cost", enter the undepreciated capital cost (UCC) at the beginning of the fiscal period.
Generally, the UCC is the amount left after you deduct CCA from the capital cost of a depreciable property. If this is the first year when you use the vehicle, leave the field blank.
If you have used the same software last tax year, the amount will be reported automatically. If you used a different software, you can find the UCC amount on the form T2125 from the previous tax year, at the Area A, in column 10.
4 - Enter the kilometers driven for business and traveled throughout the tax year.
5 - On the "Motor vehicle expenses incurred" section, enter all expenses you incurred during the tax year.
6- In the "Addition of a vehicle" section enter the information of the new vehicle you acquired during the tax year.
7- If you disposed of your old vehicle, go to the "Disposition of the vehicle" section and enter the required information. In the line "Did you liquidate all assets in this class?" Answer "No".
8 - If you want to limit the CCA on your vehicle go to the line "Limit to the CCA of this vehicle (leave blank for maximum CCA)" and enter the amount not to exceed the maximum amount allowed.
We recommend that you keep a record of all expenses and a daily mileage log.
For more information on vehicle expenses, see the following link:
ID: 20191004102125NIXX.xml
Webpage: KPA320-20191004102125NI.htm