Passenger Vehicles (Class 10.1)

Enter the acquisition date for all passenger vehicles you include in class 10.1. This allows the program to determine the amount to add to class 10.1 based on the following threshold:

* At the date of publication of the program, the CRA informed us that the increased ceiling would only be considered once a bill confirming this increase is tabled. For Québec income tax purposes, Revenu Québec has confirmed that the ceiling is applicable.

Note: You may increase the amount on line 203, Current-year addition, with regard to property in class 10.1 by the following amount: the amounts of GST and PST, or HST, applicable to the limit amount minus the GST and PST, or HST input tax credit. The program will calculate this amount.

The program only adds an amount to class 10.1 if the acquisition date entered is in the current taxation year of the corporation. For the taxation year following the year of acquisition, the program will roll forward the closing UCC balances for class 10.1 in the usual manner.

For the taxation year during which the vehicle was disposed of, you may deduct half of the amount to which the capital cost allowance would have corresponded if the disposal had not occurred, provided the corporation owned the vehicle at the end of the preceding year.

The program calculates this one-half amount if a disposal date is entered for the corporation’s current taxation year.

Note: CCA, Class 10.1 ‒ A passenger vehicle that was acquired and disposed of in the same taxation year must not be added to class 10.1, because no capital cost allowance is allowed with regards to this passenger vehicle for the year.

For current year acquisitions, enter the purchase cost of the passenger vehicle before GST and PST, or HST on the line Purchase cost, before GST and PST, or HST.

Enter the amount of GST or HST paid on purchase on the line GST or HST payable on purchase, without taking into account the GST or HST input tax credit or rebate received with regard to the appropriate passenger vehicle.

HST: Harmonized Sales Tax

Provinces that converted to HST are: Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island and Ontario.

Enter the amount of PST paid on purchase on the line PST payable on purchase, net of the PST input tax credit or rebate received with regard to the passenger vehicle.

Enter the GST or HST input tax credit or rebate received with regard to the passenger vehicle on the line GST or HST input tax credit/rebate.  

Note: The GST or HST input tax credit or rebate is generally limited to the GST or the HST payable on the limit amount.

Enter the PST input tax credit or rebate received regarding to the passenger vehicle on the line PST input credit/rebate.

Note: The PST input tax credit or rebate is generally limited to the PST payable on the limit amount.

The line Trade-in value allows the program to determine the exact amount of PST applicable to the limit and to take it into account when calculating the amount on line 203, in accordance with the CRA interpretation of Regulation 7307 of the Income Tax Act.

If the PST is charged on the net cost of a vehicle (including the trade-in value), enter the trade-in value of the vehicle on the appropriate line.

Note: If there is no trade-in, or if in the province where the vehicle has been purchased, the PST is charged on the gross cost of the vehicle (without taking the trade-in value into account), leave the Trade-in value line BLANK.