CCA for Motor Vehicle

Forum|Forum|4 years ago
March 17, 2022
2 replies
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I used the BusAuto#1 Form to fill in all of the motor vehicle expenses for 2020 which then autofilled the T2125 and, I believe, the CCA Summary chart.

I then carried forward the file into 2021.

Now, for 2021, I am trying to dispose of that vehicle, so I double click on the class column at the beginning of the CCA Summary chart in order to bring up the asset, but it is blank?

So I'm thinking that it only takes it's info from the BusAuto Form, but then how do I dispose of the vehicle?

I always thought that each item listed in the summary could be clicked on to get to the details, but I guess that's not the case.

Any help would be most appreciated!

ProFile (Canada)

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Best answer by janisbossenberry

Thanks Janis. That DID work then, thank you. The only thing it doesn't do is allow you to double click on the class number at the beginning of the CCA Summary to see the individual asset information. Maybe it's not supposed to. I just think it's odd that it's not there considering there is a line on it that specifically states "Proceeds of dispositions).

I have two final questions now if you don't mind.

Once I do the disposition via the way you said to, the CCA Summary says that there is no CCA for the year - does that mean you can't claim CCA in the year you sell the vehicle?
And lastly, the sale amount wasn't enough to utilize what CCA was there, so do I need to do anything with the amount still showing in Column 13 on the CCA Summary?

Once again, I appreciate the assistance!

The answers to your questions depends on a few things. First, ensure that you have entered the business use of the vehicle (km drive/total km) near the top of the BusAuto screen. If you have not entered any business KM, no CCA will be calculated. Secondly, there is the box that says "Is class 10 empty?" just under where you recorded the less of costs and proceeds. If you answer "yes" here, it means there are no more assets in that Class and no CCA will be claimed even if there is remaining UCC. For a Class 10 vehicle, a portion of the remaining UCC will be claimed as a terminal loss based on the KM for business use. It will show up on the T2125 in the Other Expenses section. If the vehicle was a Class 10.1 asset instead of a Class 10 asset, CCA is claimed in the year of disposition but there is no terminal loss allowed.

J

janisbossenberry

Level 7

Try this - on the BusAuto screen, under Chart C - Capital Cost Allowance for motor vehicles - there is a line called "Lesser of costs and proceeds". Enter the appropriate number there.