Employee expenses - Expenses for purchased motor vehicleYou can deduct expenses you paid to operate a motor vehicle you used to earn employment income.
We assume that you have already completed the "Employment expenses" page and that you now want to complete the "Motor vehicle expenses" subsection.
1 - On the "Left side menu of the Interview tab", under "Employment Expenses", choose the "Motor vehicle expenses" subsection.
2. On the page generated on the right, click on the plus sign "+" icon to the right of the line "Purchased motor vehicle expenses".
3. On the first part of the "Purchased vehicle" page, enter your vehicle information under the "Vehicle Information" section.
4. If it is the same vehicle as the previous year, on the line "Opening balance of the undepreciated capital cost" enter the amount of UCC that you will find in Part A of Form T777 - Statement of employment expenses in column 10 of your tax return for the previous year.
However, if this is the first year of use of this vehicle for employment purposes, do not enter an amount on this line. Go to the "Vehicle acquisition during the year" section and enter the vehicle description and the cost of the vehicle acquired and enter the cost paid or fair market value (FMV) of the vehicle, at the line " Description and amount of capital additions (other than AIIP*): or "Description and amount of capital additions of AIIP".
5. On the line «CCA class" section, in the "CCA class of the vehicle" line, you have a choice of five (5) Class.
Class 10, motor vehicle less than $30,000, before taxes.
Class 10.1, motor vehicle cost greater than $30,000 before taxes.
Class 54, Zero Emission, electric, less than $55,000.
Class 55, Taxi Vehicle or Vehicle used for rental purposes, Zero Emission.
Class 56, Zero Emissions, that is not designed to operate on public roads.
We suggest you consult the following link, for Class 54 and 55:
6. To determine the part of the expenses applicable to your employment, enter the "Kilometres travelled for business or work" and the "Total kilometres travelled".
7. In the "Motor vehicle expenses" section, enter the vehicle expenses, enter expenses such as fuel expenses and other expenses incurred during the tax year.
8. If your employer has paid you an allowance for your vehicle, go to the line entitled "Allowance received for motor vehicle expenses (excl. CCA & interest)" and enter the allowance you received in the taxation year (if applicable).
9. If you want to limit the CCA, enter the desired amount on the line "Limit to the CCA of this vehicle (leave blank for maximum CCA)".
For more information about employment expenses, please see the following links:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
For Revenu Québec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-118-v/
The program will report the amount for the vehicle expenses on line 9281 of the federal form T777 as well as line 5 of the Quebec TP-59 form for Quebec residents.
NOTE: We suggest you keep a record for each year you claim expenses. Mainly for using your vehicle, this record must show both the total kilometers you drove and the kilometers you drove for employment purposes.
ID: 20220309113623DE.xml
Webpage: KPA350-20220309113623DE.htm