Employment expenses - Two vehicles - Class 10
You have changed your vehicle in the tax year, and both vehicles
- the old and new - are in the same class of vehicles, namely the
cars that cost less than $30,000 before
taxes. Both vehicles, old and new, are entered
on the same page.
First, you must calculate all the expenses that you've incurred
for both vehicles, such as fuel costs, insurance expenses and
others. Furthermore, you will have to calculate the total
kilometres (KM) travelled in the tax year as well as the number of
kilometres travelled for business purposes. To do so, follow the
steps below:
1- On the "Left side menu on the Interview tab", select
the "Interview setup" and on the right screen, in
"Employment and other benefits", 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 on
the plus sign "+" icon to the
right of the "Purchased motor vehicle" line, enter the
information of your old vehicle as well as all expenses incurred in
the taxation year.
5- At the line "Opening balance of the undepreciated capital
cost", (the value of the vehicle) enter the amount in column 10
of Part A of the previous year's T777 federal form.
6- In addition, at the line "CCA class of the vehicle" in
the drop-down menu, choose, "Class 10 - 30 %".
7- If you received an allowance for the expenses of your
vehicle, you must enter the amount on the line "Motor vehicle
expenses (excl. CCA & interest)".
8- For the new vehicle you acquired, go to "Vehicle
acquisition during the year" section, enter 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.
9- In the section "Vehicle disposed during the year" at
the line "If you disposed of the vehicle, enter the amount
received", indicate the total amount received in payment. Enter
the adjusted cost base of the vehicle sold on the "ACB of the
disposition" line.
10- On the line "Did you liquidate all asset in this
class?", Answer" No".
11- On the line "Application of half-year rule to current
year additions", select "Yes" from the drop-down
menu.
12- 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.
13- In this case, you must enter the gain separately under the
section "Capital gains & ABIL".
14- In this case, return to the "Interview setup" go to
the "Investments income and expenses" section, check
the box "Capital gain (or losses) and capital gain history"
and click "Next" at the bottom of the page.
15- Return to the "Left side menu on the Interview tab"
you must enter this gain separately, select the item "Capital
gains (or losses) & ABIL" and on the screen to the right,
choose "Real estate and other depreciable property", enter
the information on the sale of your vehicle.
The program will report the amount on line 9368 of federal form
T777 federal, as well as on lines 16 and 41 of Quebec form
TP-59.
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 that statement must
set out firstly, total kilometers traveled, and secondly the
mileage for your job and all expenses incurred in the tax year.
ID: 20201021111933NA.xml
Webpage: KPA310-20201021111933NA.htm
