# Class 10.1 vehicle - income tax and ITC

**URL:** <https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320>\
**Category:** Tax Topics\
**Created:** [March 10, 2021, 5:15pm UTC](https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320 "2021-03-10T17:15:04Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![NiceGuy](https://avatars.discourse-cdn.com/v4/letter/n/8edcca/32.png) [@NiceGuy](https://www.protaxcommunity.com/u/NiceGuy)\
**Post date:** [March 10, 2021, 5:15pm UTC](https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320/1 "2021-03-10T17:15:04Z")

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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].

[https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html#Class101](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html#Class101)

_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.

[https://www.taxtips.ca/gst/itcvehicles.htm](https://www.taxtips.ca/gst/itcvehicles.htm)  
_The ITC will be calculated as such CCA x 13/113_

Thoughts?

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**Author:** ![snoplowguy](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/snoplowguy/32/2535_2.png) [@snoplowguy](https://www.protaxcommunity.com/u/snoplowguy)\
**Post date:** [March 10, 2021, 5:24pm UTC](https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320/2 "2021-03-10T17:24:10Z")

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The asset addition, CCA, and GST/HST recovery being a function of the CCA claimed (adjusted for personal use) seems to work the way the legislation intended it to work.

Not sure what you are asking.

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**Author:** ![NiceGuy](https://avatars.discourse-cdn.com/v4/letter/n/8edcca/32.png) [@NiceGuy](https://www.protaxcommunity.com/u/NiceGuy)\
**Post date:** [March 10, 2021, 6:56pm UTC](https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320/3 "2021-03-10T18:56:44Z")

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@snoplowguy  
You’re correct, the amount of $33,900 is correct.  
My question is about the ITC calculation. Specifically, CCA x 13/113 (for Ontario).  
I edited the question.

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**Author:** ![Arliss](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/arliss/32/52_2.png) [@Arliss](https://www.protaxcommunity.com/u/Arliss)\
**Post date:** [March 10, 2021, 7:34pm UTC](https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320/4 "2021-03-10T19:34:16Z")

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Math seems to work out right.

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**Author:** ![NiceGuy](https://avatars.discourse-cdn.com/v4/letter/n/8edcca/32.png) [@NiceGuy](https://www.protaxcommunity.com/u/NiceGuy)\
**Post date:** [March 11, 2021, 5:56pm UTC](https://www.protaxcommunity.com/t/class-10-1-vehicle-income-tax-and-itc/4320/5 "2021-03-11T17:56:09Z")

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Thank you for your replies