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:

Acquisition Date	Limit (before GST and PST, or HST)
2000 to 2021:	$30,000
2022:	$34,000
2023 and after:	$36,000

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.

Example Taxation year beginning on January 1, 2022, and ending on December 31, 2022 Purchase cost of the new vehicle (purchased on September 1, 2022): $55,000 GST paid: $2,750 (i.e. 5% of $55,000) GST input tax credit: $1,700 (i.e. 5% of $34,000) Trade-in value of the old vehicle: $20,000 PST paid on net cost of vehicle: $2,800 (i.e. 8% x ($55,000 - $20,000)) PST input tax credit: $0 The amount added to class 10.1 by the program is $35,120, based on the following calculation: Limit for 2022 $34,000   Add: GST $34,000 x 5% = $1,700 Add: PST 8% x ($34,000 - $20,000) = $1,120 Less: input tax credit 5% x $34,000 = ($1,700) Amount added to Class 10.1: $35,120

Where the vehicle, that is a DIEP, is disposed of to a person or partnership with which the taxpayer deals at arm’s length, the actual proceeds of disposition are multiplied by the ratio corresponding to the capital cost of the vehicle divided by the result of the following formula:

D + (E + F) – (G + H)

where

D is the cost to the taxpayer of the vehicle,

E is the amount determined under paragraph 13(7.1)(d) ITA in respect of the vehicle at the time of disposition,

F is the maximum amount determined for C in the UCC definition set out in subsection 13(21) ITA in respect of the vehicle,

G is the amount determined under paragraph 13(7.1)(f) ITA in respect of the vehicle at the time of disposition, and

H is the maximum amount determined for J in the UCC definition set out in subsection 13(21) ITA in respect of the vehicle.

When the date of disposition is part of the taxation year and the answer to the question Was the property a DIEP in a prior taxation year? is Yes, complete the fields under the Part Proceeds of disposition for a passenger vehicle (DIEP in a prior taxation year only). The amount on line 207, Proceeds of disposition, is equal to the amount calculated on the line Applicable proceeds of disposition when this amount is greater than the UCC available to calculate the recapture of CCA for a passenger vehicle that is a DIEP under subsection 13(2) ITA. In other situations, line 207 is calculated to 0.

When rolling forward a file in which a passenger vehicle has been acquired in the taxation year and for which the answer to the question Is the property a designated immediate expensing property (DIEP) for the taxation year? is Yes, the amount rolled forward on the new line Original capital cost (line 203 in the taxation year of the acquisition) will correspond to the amount entered on line 203, Current-year additions. This amount will then be rolled forward until the vehicle is disposed of.