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T1
402 Business income
  GST and Ontario PST portion on a class 10.1 vehicle addition |
| Program(s) affected: |
T1 |
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Document created: |
03 16, 2008 |
| Tax year(s): |
2008 |
Document last modified: |
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| Version(s): |
12.01, 12.10, 12.11, 12.13 |
Problem status: |
Fixed in v12.20 |
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My client is a resident of Ontario and bought a class 10.1 passenger vehicle in 2008. The program is not calculating the capital cost limit for a passenger
vehicle properly. What can I do?
The capital cost limit for a class 10.1 passenger vehicle is $30,000. The calculation of the GST and Ontario PST on $30,000 is as follows:
GST at 5% of $30,000 = $1,500; and
PST at 8% of $30,000 = $2,400.
The program does not calculate the portion relating to GST and Ontario PST properly and limits the capital cost to $33,600 instead of $33,900.
As a workaround, use the Adjust-Curr keyword, enter "Missing GST and PST portion" in the description field and "300" in the $ field. Note that if you recalculate
this tax return with a subsequent version in tax year 2008, you are going to have to remove this entry in order to obtain the correct amount.
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