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T1
472 Vehicle expenses

Print this pageForward this document  Motor-vehicle leasing costs prorated twice on Quebec form TP-59

Program(s) affected: T1 Document created: 02 26, 2007
Tax year(s): 2006 Document last modified:
Version(s): 10.10 Problem status: Fixed in v10.13

Why is DT Max prorating current-year motor-vehicle leasing costs reported on line 36 of part 3 of the TP-59?

DT Max should not prorate this amount since the proration, based on the percentage of use for employment purposes, is calculated on line 29 of the TP-59, and applied to all motor-vehicle expenses on line 39. As a workaround, please follow these steps:

1. Select the Total lease charges in the current year option under the Leasing-Cost keyword.

2. Use Alt-J to enter a different amount of leasing costs for Quebec.

This grossed-up amount should be equal to the leasing costs divided by the percentage of use for employment purposes, calculated on line 29 of form TP-59.

Example:

Percentage of use for employment = 75%

Motor-vehicle leasing costs (federal): $6,000

Quebec leasing costs (Alt-J): $8,000 ($6,000 / 75%).