1/2 year and UCC adj on Motor veh sched

T1
1

Just added a 10.1 vehicle on Chart 3. UCC before CCA is 33,600. The half year adj shows as (16,800), however it has added it to the 33,600 to arrive at the Base for CCA. Has anyone else experienced this? I’ve just fixed it with an override, instead of $15,120 in CCA, it actually only $5,040

2

The software assumes the asset to be AIIP (Accelerated Investment Incentive Property) and claims 45% CCA in year 1 unless you decide it is not an AIIP asset.

This is the same with all asset additions. Instead of 1/2 year rule, the CCA for current year additions is 1.5 times the general CCA rate of that particular class (3 times the normal rate for current year additions).

3

Thank you. I should have figured that out myself, it isn’t the first time I’ve come across it – maybe a little tax fatigue😊

image001.jpg

4

I have a client who paid $30k for a truck March 2019, started a business in 2020. Client feels would be worth about $19k end of 2020. What would be the best way to enter it to maximize CCA?