Working on sole proprietor’s 2024 return. Looked at 2023 return (completed by taxpayer) to see assets - noticed a pickup truck may have been incorrectly classified as a Class 10.1 asset, when it likely should have been Class 10. Vehicle Details: 2021 Ford F-150 Lariat 4WD SuperCrew (5.5’ box) Bo…

I question first how it is used. Are they in the business of transporting passengers 90%+? Class 10 Are they hauling goods 90%+? Class 10 Are the moving equipment to the job site 90%+? Class 10 If only to drive to and from locations and are not moving anything, then it could be Class 10.1. Could…

[image] grangers2016: Are they in the business of transporting passengers 90%+? Class 10 Are they hauling goods 90%+? Class 10 Are the moving equipment to the job site 90%+? Class 10 If only to drive to and from locations and are not moving anything, then it could be Class 10.1. Could still b…

I believe it’s also a test that is determined when you purchase the truck which may be important. Also ask what they did for HST/GST purposes.

The Class 10.1 vehicle was disposed of in 2024 [Taxpayer completed their own return in 2023]. Below is the data entered for the vehicle in the 2024 T1 return. Screenshots – 2024 T1 For class 10.1 asset entry: Beginning Cost: $34,000.00 (capital cost limit in 2022 - year of acquisition) Beginnin…

I think it likely he paid more than $ 40,000 for the truck?

@Arliss Just to clarify, the original purchase price of the truck was over $40,000. However, the capital cost limit for Class 10.1 in 2022 (the year the truck was acquired) was $36,000.

As I recall, I think if you were to go back and recreate the original addition in TC you’d find the “cost” line isn’t = CCA limit?

This is exactly what I thought would happen when one of my client started Uber in 2024. I didn’t know if TX would allow me to enter a number more than the UCC in the first year, I was thinking, just enter a figure equal to UCC in the first year if it doesn’t allow me to do that, for the recapture, …

Class 10.1 truck traded in for $40,000 (trade in allowance) in 2024 Original purchase price $50,000 Capital cost limit: $36,000 in 2022 (year of acquisition) Does $4,000 excess over the limit create capital gain or does selling below purchase price mean no capital gain?

No capital gain or loss, and if class 10.1, no recapture or terminal loss

Vehicle Classification – Class 10 vs. Class 10.1

Tax Topics

obhorst May 20, 2025, 9:37pm 14

And it does not have anything to do with class 10.1 since the truck is used in his HVAC business as was stated earlier.

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Vehicle Classification – Class 10 vs. Class 10.1

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