Expenses incurred with two cars in the same categoryIf you used two vehicles of the same class during the tax year, you must complete a page for each vehicle and enter the following information:
1. On the "Left side menu on the Interview tab", under "Self-employment income", choose the "Motor vehicle expenses" sub-section.
2. On the screen on the right, select "Purchased motor vehicle" and enter the information about the vehicle (s) on the page that appears.
3. For the line "Level at which the expense is claimed", choose "Business expenses" in the drop-down menu to your right.
4. For the line "CCA class of the vehicle", select "Class 10 - 30%" or "Class 10.1 - 30%" from the drop-down menu to the right.
NOTE: Your passenger vehicle can belong in either Class 10 or Class 10.1. To determine the class your passenger vehicle belongs, you have to use the cost of the vehicle before you add the GST/PST, or the HST. Include your passenger vehicle in Class 10.1 if you bought it in the current tax year and it cost more than $30,000.
5. 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 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.
6- For the second vehicle, if is not an addition, enter the fair market value on the line "Opening balance of the undepreciated capital cost". But, if it is an addition, complete the "Addition of a vehicle" section.
7. Enter the business mileage and the total mileage for each vehicle used during the tax year.
8. Enter the expenses for each vehicle used during the tax year.
9. You must perform the same procedure for the second vehicle.
However, for Section A on page 5 of Form T2125, the amounts from the columns will be reported in proportion to the expenses in relation to the use of vehicles for business purposes.
Nevertheless, the program will carry over to the following year the correct "Undepreciated capital cost opening balance".
We recommend that you keep detailed records of all expenses. You must keep your records for at least six years.
For more information on this topic, please consult the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
ID: 20200107171809NI.xml
Webpage: KPA320-20200107171809NI.htm