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Level 2
March 12, 2024
Question

CCA on class 10 vehicles

  • March 12, 2024
  • 1 reply
  • 4 views

A self-employed taxpayer sold a vehicle in 2023 that was used for business in 2022 and 2023 and bought a new vehicle to use for business in 2023.  Will I have two class 10s on the 2023 return, one for each vehicle?  Or will I have one class 10 with UCC=UCC @ beginning of 2023-disposition proceeds+cost of new vehicle?

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1 reply

Level 7
March 15, 2024

If they are both Class 10 vehicles (as opposed to Class 10.1 vehicles), then the CCA class is treated as a pool.  Opening UCC, less lesser of proceeds and cost, plus addition.

 

If they are Class 10.1, then they are each in their own class, not pooled.