When entering a class 10.1 vehicle into the tax return for a sole prioretor the software calulated an additon amount of $33,900. [Actual cost of vehicle is $35,000 + $4,550 (tax) = $39,550] (Buiness usage is 35%)
The addition amount is $33,900 [$30,000 + $3,900 (tax) = $33,900].
We consider the capital cost of a Class 10.1 vehicle to be $30,000 plus the related GST/HST, or PST. The $30,000 amount is the capital cost limit for a passenger vehicle.
My issue is it seems like double-dipping/unfair when calculating the ITC because the capital cost includes HST ($33,900) but at the same time the ITC is going to be calculated on the CCA amount.
The ITC will be calculated as such CCA x 13/113