T2 return. 10.1 class car purchase for $38,000. CCA restricted to $ 30,000. How to record the difference?? Thanks!

Answer

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On a T2 the asset would be reported on the balance: s100. You would need to record the transaction using actual documented information. Schedule 8 is for Capital cost allowance, (CCA).  For class 10.1, as Nancy mentioned, only $30,000 can be used for CCA purposes. Any remaining asset cost cannot be used for CCA or any other tax purpose. The original amount is reported on the balance sheet.

Because of the above, there are special rules that apply. The rules can be found at the following CRA link:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/capital-cost-allowance/classes-depreciable-properties.html

Hope this helps

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