Part B - Class 10.1
List each Class 10.1 vehicle on a separate line.
Column 2 - Undepreciated capital cost at the start of the year
If you claimed CCA in any previous year for a Class 10.1 vehicle, record in this column the undepreciated capital cost (UCC) of that vehicle at the end of last year. For instance, if you completed Part B of Form T777 in 2018, you would have recorded this amount in column 8. However, if you received a GST/HST rebate for that vehicle in 2019, you have to reduce your opening UCC by the amount of the rebate.
Column 3 - Cost of additions in the year
To determine what class your passenger vehicle belongs to, use the price of the car before you add the GST and any PST, or HST. However, include the GST and PST, or HST, in the vehicle's capital cost.
If you owned a passenger vehicle for personal use and then started using it for employment in 2019, there is a change in use. In most cases when this happens, the amount you will enter in column 3 is the fair market value of the property, at the time you start using the property for employment.
For a passenger vehicle you acquired in 2019 that cost you more than $30,000 before GST and PST, or HST, no matter how much more than $30,000 it cost, the amount you record is $30,000 plus the GST and PST, or HST, that you would have paid on $30,000.
For example, if you bought a passenger vehicle in 2019 that cost $31,000 before the GST and PST, or HST, your vehicle belongs in Class 10.1. Assume the HST on $30,000 is $3,900. Your capital cost is $33,900 ($30,000 + $3,900). You enter $33,900 in column 3.
There is a limit on the capital cost of a Class 10.1 vehicle you buy from a person with whom you have a non-arm's-length relationship. Generally, such a relationship happens when the person from whom you acquire the vehicle is a relative. A non-arm's-length relationship can also happen in certain business relationships.
In this case, the capital cost is the least of the following 3 amounts:
- the fair market value of the vehicle when you acquired it
- $30,000 plus the GST and PST, or HST, that you would have paid on $30,000 if you had acquired the vehicle in 2019
- the seller's cost of the vehicle just before you acquired it. The cost can vary depending on what the seller used the vehicle for before you acquired it. If the seller used the vehicle to earn income, the cost will be the undepreciated capital cost of the vehicle just before you acquired it. When the seller was not using the vehicle to earn income, the cost will usually be the original cost of the vehicle
Column 4 - Proceeds of disposition in the year
For a Class 10.1 vehicle you disposed of in 2019, record the lesser of:
- the proceeds of disposition of the property minus the related outlays and expenses; and
- the capital cost of the vehicle
Column 5 - Base amount for capital cost allowance
Base your CCA claim, if any, on the amount in this column.
If you owned the vehicle in 2019 and still owned it at the end of 2019, enter in column 5 the same amount you entered in column 2.
If you acquire a class 10.1 vehicle in 2019 that is not accelerated investment incentive property (AIIP), you can only claim CCA on 50% of the capital cost. This is known as the 50% rule. If you acquired a class 10.1 vehicle in 2019 that is not AIIP and you still owned the vehicle at the end of 2019, enter 50% of the amount in column 3 in column 5.
The 50% rule does not apply to AIIP. If you acquired a class 10.1 vehicle in 2019 that is AIIP and you still owned the vehicle at the end of 2019, enter 1.5 times the amount in column 3 in column 5.
If you acquired and disposed of the same Class 10.1 vehicle in 2019, enter "nil" in column 5.
For a Class 10.1 vehicle you disposed of in 2019, you may be able to claim 50% of the CCA that would be allowed if you had still owned the vehicle at the end of the year. This is known as the half-year rule on sale.
You can use the half-year rule if you owned, at the end of 2018, the class 10.1 vehicle you sold in 2019. If you meet this condition, enter 50% of the amount from column 2 in column 5.
Column 7 - Capital cost allowance for the year
Claim CCA if you were still using the vehicle for employment at the end of 2019. If you started using a vehicle for employment part way through the year, you can claim CCA on the vehicle for the full year. You do not have to limit your CCA claim to the part of the year that you used the vehicle for employment.
Record the CCA you want to claim for 2019. The most you can claim is 30% of the amount in column 5.
Column 8 - Undepreciated capital cost at the end of the year
Calculate the undepreciated capital cost at the end of 2019 as follows:
- For a Class 10.1 vehicle you owned in 2018 and still owned at the end of 2019, enter the amount you get after you subtract the amount in column 7 from the amount in column 2.
- For a Class 10.1 vehicle you acquired during 2019 and still owned at the end of 2019, enter the amount you get after you subtract the amount in column 7 from the amount in column 3.
- For a Class 10.1 vehicle you disposed of during 2019, enter "nil" in column 8. The recapture and terminal loss rules do not apply to a Class 10.1 vehicle.
Completing your tax return
Calculate your CCA claim using the back of Form T777, Statement of Employment Expenses and enter the amount on the applicable line on the front of the form.
Enter the amount you can deduct from the Total expenses line (9368) of Form T777 on line 22900 of your return.
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