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Vehicle Expense - Not CCA


weesep

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This is my first time using UFILE, usually I go to H&R block but my regular lady retired so I thought I'd take a shot at doing this myself....wow.  I didn't pay her enough.

Here's my problem. 

I run my own small business out of the house, it doesn't make a ton of money but it's fun.  I claim the income and I claim my expenses, one of which is my vehicle costs.  I track my mileage for the business separate from my personal use but it's the same truck.  My H&R block lady seems to be able to track all this info in a category called "Motor Vehicle Expense (not include CCA) (See chart A)"  

Chart A 

Allows me to track:

KM's for total usage and business usage 

Fuel and Oil
insurance

Maintenance
License and Registration
Leasing 
and Other

And produces me a number to use on line 9281 in Part 5 on Page 2

In the UFILE software, I only seem to have three options for vehicle expense and all of them are CCA.

Without using a CCA option, I can't seem to claim mileage or fuel costs, two of my biggest expenses and that plays a big role in my final numbers.

Any suggestions on how to capture these values or where else I may have missed the chance to enter them?

Thanks in advance...(and by advance, I know I'm late by 6 months on my taxes already)

Weesep

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Hi Weesep,

 

You can deduct expenses you paid to run a motor vehicle you use 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 - In the "Left side menu on the Interview tab", under "Employment Expenses", choose the "Motor vehicle expenses" subsection and on the screen on the right, select "Purchased motor vehicle expenses for purposes of employment expenses".
2 - In the first part of the "Motor vehicle expenses for purposes of employment expenses" page, enter the information about your vehicle. 

3 - 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 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 line "Amount of capital additions" instead and enter the fair market value (FMV) of the vehicle.

4- On the line "CCA class of the vehicle", select the class of your purchased vehicle from the drop-down menu. The CRA considers that a vehicle whose cost is less than $30,000 before taxes is Class 10 and other vehicles are Class 10.1.

5 - To determine the part of the expenses applicable to your employment, enter the "Kilometres travelled for business or work" and the "Total kilometres travelled".

6 - In the section on vehicle expenses, enter expenses such as fuel costs and other expenses incurred in the taxation year.

7 - In the section entitled "Allowance received for motor vehicle expenses", on the line "Motor vehicle expenses (excl. CCA & interest)", enter the allowance you received in the taxation year (if applicable).

8 - On the line "Amount of capital additions", enter the cost of the vehicle acquired in the taxation year and used for employment purposes (if applicable). In the case of an existing vehicle that you use for employment purposes for the first time, enter the fair market value instead.

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:
http://www.cra-arc.gc.ca/E/pub/tg/t4044/

For Revenu Québec:
http://www.revenuquebec.ca/en/sepf/publications/in/in-118/default.aspx

http://www.revenuquebec.ca/en/citoyen/declaration/produire/comment/aideligne/revenu-net/ligne207/default.aspx

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.

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