CCA Area A Incorrect Cost of Addition

[Ali Mahmood]

Hello,

I purchased a vehicle for a capital addition of $39,838.36:

 

However, on my return in the CCA Area A, the cost in column 3 is only $35,700:

 

 

In Area B the price is correct, why is this happening?

 

 

Thanks

 

 

[Geo123]

Hello Ali Mahmood,

There is a maximum amount prescribed by the CRA for CCA Class 10.1

The maximum CCA rate for this class is 30%.  The maximum capital cost of each vehicle that may be included in Class 10.1 is now $34,000 plus GST and provincial sales tax (PST), or HST.  eg.  BC = 35,700

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.html

[Ali Mahmood]

Ah I should have read that, thanks so much Geo!

[Geo123]

Hello Ali Mahmood,

You are welcome.

[davidjwillson]

I've had my fair share of challenges with CCA in Area A as well. One common reason for an incorrect cost of addition could be discrepancies in asset valuation or misclassification of certain expenses. It's crucial to double-check your capital assets' initial cost, ensuring all relevant expenses are included while avoiding any that don't qualify https://www.choicenotchance.org.nz/understand-gambling/know-your-odds. Also, cross-referencing your records with current tax regulations can help identify potential errors. If you provide more specific details about your situation, I'd be happy to share more targeted advice!