How to change sales tax rate from default 13% to 5% Quebec rate on Chart 3 CCA section of the motor vehicle expense

Tax Topics
1

Hello,

I am seeking answers to a few questions below.

1/ a client bought a 2015 preowned vehicle in Quebec in Nov 2025 and used it for personal and uber purposes in Ontario. TaxCycle default the sales tax as HST 13%. How to change it into 5% Quebec rate for this vehicle?

2/ he used it for uber for just one month in Dec 2025. Is it ok to apply the half-year rule and the accelerated CCA as there is only one month income and net business loss will be relatively high. If no CCA is claimed, there will be a net business income. Please advise.

Thank you.

2

Are you referring to the CCA section (Chart 3) on the Motor Vehicle worksheet? I believe it defaults to the GST/PST rates in effect for the province of residence (which you specify on the Info worksheet). It doesn’t default to 13% for my files, because none of my clients live in Ontario.

The half-year rule is required for class 10 and 10.1 but suspended if you use the AII rules - you don’t use both at the same time. You do still have the option to claim the maximum CCA or a lesser amount. It is ok if the CCA creates or increases a business loss, but you can choose a lesser amount of CCA in the first year if you want to save the UCC balance for use in future years.