Electric zero emission vehicle - Class 54
You have acquired an electric zero emission vehicle - category
54
Two new CCA classes have been created for zero-emission vehicles
acquired after March 18, 2019 and are available for use before
2028.
Class 54 motor vehicles and passenger vehicles excluding
taxicabs and automobiles used for lease and rent
The CCA rate for this class is 30% but a higher deduction (up to
a maximum of 100%) may apply for certain eligible vehicles acquired
after March 18, 2019, and before January 1, 2028 (phase out
starting in 2024).
The capital costs will be deductible up to a limit of $55,000
plus sales tax starting in 2019 for zero-emission passenger
vehicles. The limit will be reviewed annually, and special
rules will apply in the year of disposition for such
vehicles where the capital costs exceed that limit.
To claim CCA (capital cost allowance) on this vehicle, follow
the steps below:
1. On the "Left-side menu of the Interview tab", select
the "Self-employment income" section.
2. Go to the "Motor vehicle expenses" subsection and
click on the " +" sign to the right
of "Auto purchased".
3. If this is the first year you are claiming CCA on this
vehicle, enter the information on the line "Description and
amount of capital additions of AIIP" (Accelerated
investment incentive property).
Note: For the first-year acquisition leave blank
the "Opening balance of the undepreciated capital
cost". The program will autofill this field the following
year when you carry over your information.
4. Enter the description and amount. The amount includes the
full amount paid including the taxes.
5. You may limit the CCA by entering an amount on the line:
"Limit to the CCA of this vehicle (leave blank for maximum
CCA)".
6. Enter kilometers travelled for business or work
and total kilometers travelled. We recommend you keep a log of
kilometers traveled and expenses incurred.
7. Claim your expenses under the heading "Motor
vehicle expenses incurred".
8. The program will automatically carry over the
information into the "T2125 Statement of Business or
Professional Activities" Area A column 3 and /or column
4.
9. The CCA will appear on line 9936 of the "T2125 Statement
of Business or Professional Activities"
For more information on this topic, please consult the following
website:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/capital-cost-allowance/classes-depreciable-properties/zero-emission-vehicles.html
ID: 20221020153450MA.xml
Webpage: KPA310-20221020153450MA.htm
