Employee expenses - Expenses for purchased motor
vehicle
You can deduct expenses you paid to operate a motor vehicle you
used to earn employment income.
We assume that you have already completed the "Employment
expenses" page and that you now want to complete the "Motor
vehicle expenses" subsection.
1 - On the "Left side menu of the Interview tab", under
"Employment Expenses", choose the "Motor vehicle
expenses" subsection.
2. On the page generated on the right, click on
the plus sign "+" icon to the
right of the line "Purchased motor vehicle expenses".
3. On the first part of the "Purchased vehicle" page,
enter your vehicle information under the "Vehicle
Information" section.
4. If it is the same vehicle as the previous year, on the line
"Opening balance of the undepreciated capital cost" enter
the amount of UCC that you will find in Part A
of Form T777 - Statement of employment
expenses in column 10 of your tax return for the previous
year.
However, if this is the first year of use of this vehicle for
employment purposes, do not enter an amount on this line. Go to the
"Vehicle acquisition during the year" section and enter the
vehicle description and the cost of the vehicle acquired and enter
the cost paid or fair market value (FMV) of the vehicle, at
the line " Description and amount of capital additions
(other than AIIP*): or "Description and amount of
capital additions of AIIP".
5. On the line «CCA class" section, in the "CCA class
of the vehicle" line, you have a choice of five (5) Class.
Class 10, motor vehicle less than $30,000,
before taxes.
Class 10.1, motor vehicle cost greater than $30,000
before taxes.
Class 54, Zero Emission, electric, less than
$55,000.
Class 55, Taxi Vehicle or Vehicle used for
rental purposes, Zero Emission.
Class 56, Zero Emissions, that is not designed
to operate on public roads.
We suggest you consult the following link, for Class 54 and
55:
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
6. To determine the part of the expenses applicable to
your employment, enter the "Kilometres travelled for business or
work" and the "Total kilometres travelled".
7. In the "Motor vehicle expenses" section, enter the
vehicle expenses, enter expenses such as fuel expenses and other
expenses incurred during the tax year.
8. If your employer has paid you an allowance for your vehicle,
go to the line entitled "Allowance received for motor vehicle
expenses (excl. CCA & interest)" and enter the allowance
you received in the taxation year (if applicable).
9. If you want to limit the CCA, enter the desired amount
on the line "Limit to the CCA of this vehicle (leave blank for
maximum CCA)".
For more information about employment expenses, please see the
following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044.html
For Revenu Québec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-118-v/
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/201-to-260-net-income/line-207/
The program will report the amount for the vehicle
expenses on line 9281 of the federal
form T777 as well as line 5 of the Quebec
TP-59 form for Quebec residents.
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: 20220309113623DE.xml
Webpage: KPA350-20220309113623DE.htm
