Employment expenses - Two vehicles - Class
10.1
You have changed your vehicle in the tax year, and both vehicles
- the old and the new - are in Class 10.1, i.e. cars whose value
exceeds $30,000 before taxes.
You must enter expenses for each vehicle separately, according
to the CRA rules.
Regarding the vehicle that you owned at the beginning of the tax
year, you must enter its "Opening balance of the undepreciated
capital cost", its category; the total number of kilometers
(KM) traveled in the tax year, as well as the number of kilometers
traveled for business purposes, until the time of the sale of this
vehicle. The same will apply for all the expenses, such as fuel
costs, insurance premiums and others. To do so, follow the steps
below:
1-On the "Left side menu on the Interview tab", select
"Interview setup" item and in the right-hand page that is
generated, go to the "Employment and other benefits" group,
check the box for "Employment expenses" and click on
"Next" at the bottom of the page.
2- Return to the "Left side menu on the Interview tab"
and select the item "Employment expenses" and on the page on
the right-hand side, select the type of job expenses that applies
to your situation.
3- Complete the page "Employment expenses" according to
the information you have. Click on "Next" at the bottom of
the page after you've completed the page.
4- On the page entitled "Motor vehicle expenses" click
the plus sign "+" icon to the
right of the line "Purchased motor vehicle", enter the
information for your first vehicle, Including the "Opening
balance of the undepreciated capital cost", as well as the
"CCA class of the vehicle", the total kilometers traveled
and the amount traveled for business purposes, and all expenses for
this vehicle.
5- In the section "Allowance received", on the line
"Allowance received for motor vehicle expenses (excl. CCA &
interest)", enters the amount you received from your employer,
if the employer paid you an allowance for your vehicle.
6- Go to the "Vehicle disposed during the year" section
under the "ACB of the disposition" line, enter the Adjusted
Cost Base Price of the vehicle sold i.e. the original purchase
price of the vehicle.
7- For the line "If you disposed of the vehicle, enter the
amount you received", indicate the total amount received in
payment.
8- In the line "Did you liquidate all assets in this
class?", Select "Yes" from the drop-down menu.
9- The rules for recovery and final losses do not apply to
vehicles of class 10.1.
10- At the bottom of the page, click on the arrow between
"Previous" and "Next".
11 - On the screen that appears, choose "Purchase
Vehicle", click on
the plus sign "+" icon and a
new page titled "Purchased vehicle" will be generated.
12- On this page, enter the information for the new vehicle and
indicate its date of acquisition.
13- Enter the total kilometers traveled and the number of
kilometers traveled for business purposes for the new vehicle
during the tax year.
14- In the "CCA Class" section, enter category 10.1 from
the drop-down menu. On the line "Opening balance of
undepreciated capital cost", do not enter any amount.
15- As you did for the former vehicle, enter the expenses
incurred for the new vehicle in the tax year, the total number of
kilometers traveled in the tax year as well as the number of
kilometers traveled for business purposes.
16- If you have received an allowance for the expenses of your
vehicle, you must enter the amount on the line "Allowance
received for motor vehicle expenses (excl. CCA &
interest)".
17- In the "Vehicle acquisition during the year" section,
file the relevant information in the lines "description and
amount of capital additions (other than
AIIP)" or "Description and amount of capital
additions of AIIP*", depending on the qualification of the
vehicle.
In the "Description of the vehicle and vehicle cost"
line, enter the vehicle description and the price paid
including the taxes for the new vehicle. In addition,
enter the ACB on the line "Adjusted cost base of the
vehicle".
18- On the line "Application of half-year rule to current
year additions", select "Yes" from the drop-down
menu.
19- If you want to limit the CCA, for the line "Limit to the
CCA of this vehicle (leave blank for maximum CCA) ", enter
the desired amount. Otherwise, leave the field blank to obtain the
maximum CCA amount.
The program will carry over the amount on line 9368 of federal
form T777, as well as on lines 16 and 41 of Quebec form TP-59.
In addition, please note that under section A "Calculation of
capital cost allowance (CCA) claim", in column 3 "Cost of
additions in the year", the amount entered by the program will
be $30,000 plus applicable taxes.
We recommend that you consult the CRA guide by clicking on the
following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
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: 20201021110036NA.xml
Webpage: KPA310-20201021110036NA.htm
