For tax purpose, a passenger vehicle may be subject to a limit on the amounts that can be deduct for capital cost allowance, interest, and leasing costs.
A list of vehicles that are not defined as passenger vehicle
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Month: July 2013
Comparison of CCA class 10 and class 10.1 vehicles
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You passenger vehicle can belong to either class 10 or class 10.1 depending on the cost of the vehicle. If it costs more than $30,000 (cost limit) before GST and PST or HST, it belongs to class 10.1. The rules of capital cost allowance (CCA) between these two classes are different.
The capital cost limit of a passenger vehicle for CCA purpose
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The capital cost limit of a passenger vehicle is $3,000 if the vehicle was acquired after year 2000. If the cost of vehicle is more than $3,000, it has to be listed in separated class 10.1. The maximum capital cost that can be included in class 10.1 is $3,000 plus related GST and PST or…
Which year’s tax return is used to calculate Canada child tax benefit (CCTB)
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Many people don’t understand why their Canada child tax benefit (CCTB) payment received in July was different from the amount received in June. In July every year, the monthly CCTB payment is recalculated using the tax return of new base year because CCTB benefit year starts from July 1.
Benefit year for the purpose of CCTB
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The benefit year is the 12-month period during which the Canada child tax benefit (CCTB) payments are paid. The benefit years runs from July 1 of the year following the base year to June 30 of the next year. For example, CCTB payments calculated based on the 2011 income tax return will start being issued…
Base year for the purpose of CCTB
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The base year is the year of the income tax return from which information is taken to calculate the Canada Child Tax Benefit (CCTB) entitlement for the benefit year. The base year is the calendar year just before the start of the benefit year.
Available for use
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Available for use: generally, an asset is considered to become available for use and eligible for capital cost allowance (CCA) and investment tax credit at the earliest of:
Motor vehicle for tax purpose
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A motor vehicle is an automotive vehicle designed or adapted for use on highways and street. A motor vehicle does not include a trolley bus or a vehicle designed or adapted to be operated only on rails.
How to stop paying CPP
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Starting from 2012, you are required to make CPP contributions on employment income and/or self-employment income as long as you are under the ages of 70 even if you are collecting CPP benefit. However, if you are 65 or older and you are a CPP working beneficiary, you can elect to stop paying CPP contributions.
CPP working beneficiary
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You are a CPP working beneficiary if you meet all of the following conditions: