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Guest kirkmegna

CCA Confusion/Errors/Frustrations

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Guest kirkmegna

This post will be in 2 parts. The first part will discuss a concern I have with the way CCA is set up on UFile ONLINE because it’s not very clear. The second part will discuss an actual error/omission (I believe) on the PDF Print out and my question is: has this been fixed for 2012?

 

Part 1:
Under the “Purchased Vehicle” form for “Motor Vehicle Expenses” of Self-Employed Income, there is a field which asks for “Opening balance of the undepreciated capital cost”. I found this somewhat puzzling because I have never seen CCA claimed on the same section as Motor Vehicle Expenses. This was further confirmed by your own printout forms as shown highlighted in the images below.

562232_620013832423_2079522174_n.jpg

and
 

576057_620013882323_1589979091_n.jpg

 

Also, under the CCA form – Capital Cost Allowance for the Business, it states: “If you wish to claim depreciation on an asset used for the business, select the class of the asset below.”

All these things led me to believe that CCA was only calculated under the CCA section and NOT under Motor Vehicle Expenses. As such, I filled out the form under the CCA section but also filled out the field for CCA under my Purchased Vehicle. As it turns out, this calculated depreciation twice on my return. I think there should be information under the help icon that clearly states you SHOULD NOT fill out a CCA form for your motor vehicle, if you’re filling in the CCA field.

 

Part 2:
After going back through my return to find out where the double claim came from, I saw the following:

 

544330_620013847393_992523112_n.jpg

 

The first two entries are the ones I entered under the CCA form (A laptop and vehicle respectively) and correctly account for the % of business use, however the UCC is incorrect. For example, the 2nd entry had a starting UCC of $926 but because only a portion of the vehicle was for business use, the $63 under the 9th column is correct (since it allows for an "adjusted amount").

The 3rd entry was taken from the CCA field under Motor Vehicle Expenses, but shows as 100% business use (even though the business km on the same form indicates that isn’t the case). Column 9 should read as $63 (since it's the exact same car) rather than $278. The UCC on this entry is correct, however. The total clearly doesn’t add up to the numbers shown in column 9 and accounts for a double entry of $63.

 

On the CCA Carryforwards Tax Diagnostics page of the UFile PDF, it shows as the following:

 

24312_620013867353_1167236958_n.jpg

 

There’s no description for the 3rd item (which is my vehicle – this entry is taken from the CCA field on the Purchased Vehicle page) and the UCC details are wrong for the 2nd entry.

For 2012 I will be only filling out the CCA form as it's the only one with a description apparently, but I'd still like to know why the numbers are so different and conflicting!

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PART 1: I have been explained that we felt that it was better to have people enter the data about the motor vehicule (including CCA) in a single page instead of forcing you to enter this information into two distinct entry pages. I will transmit your comment to the development team.

 

PART 2: We have sent you an email asking for a copy of your file. We need to take a look at it.

 

Thank you for your patience.

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Hey Gabriel,

 

Thanks for the response and passing along my comment. There definitely should only be one spot to enter that data, as I know for a fact I'm not the only person who has made this duplication mistake (at least 2 of my associates who also use Ufile Online).

 

Regarding part 2: The files/screenshots I was referencing are from 2011 (or you can also see the discrepancy in 2010 as well). I have not filed 2012 yet, as I'm waiting on a response to the problem I posted about here, and a response as to whether this CCA discrepancy no longer occurs in the 2012 version.

 

I did receive an email from you regarding Request# UF323313, however I thought this was pertaining to my "Possible Rounding Error" problem as I submitted a "Support Request Form" directly from the site on March 19th, and authorized UFile to view my tax file as per your instructions. Please let me know if you or your dev team require any further details that could assist in troubleshooting these issues. Please also let me know if I'll need to send another "Support Request Form" from my 2011 account referencing the ID # listed above.

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Yes, I'm glad it's resolved!

 

I'm going to post what was discussed with support here in case someone else finds the same problems!

 

 

1) The missing description was identified as a bug and is being passed along to the tech team. Essentially when you enter your CCA under Motor Vehicle Expenses, the description area is currently left blank under the Capital Cost Allowance to Carry Forward page. Hopefully this will be fixed in the 2013 release.

 

2) When entering data under the CCA category, the program assumes the % use for business will remain constant for the life of the item. While this isn't always the case for class 10-30 items (ex. vehicle or computer), the program doesn't account for this and uses a very "blunt" method for calculating the values. As such, the prorated amounts will always be entered into all fields when using these forms. 

 

3) It was suggested that help text should be added, to explicitly state that motor vehicle CCA should be added under the Motor Vehicle Expenses form only, and not under the CCA category.

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