If you are claiming capital cost allowance (CCA) on more than one business vehicle, you might have to calculate the allowable portion of CCA by hand.
This would happen if you used one or more of the vehicles for personal use.
The formula for calculating the allowable portion (in the case of 2 vehicles) is (E1×R1 + E2×R2) ÷ T
| Where: |
E = CCA at the end of year (before taking business use into account) |
| |
R = ratio of business use to total use |
| |
T = Sum of end of year CCA for all vehicles (before taking business use into account) |
How do I find my end of year CCA?
- How do I find my end of year CCA?
-
Example
Susan uses 2 vehicles for her business that still have undeducted CCA.
| |
CCA end of year (E) |
Business Use (R) |
| First Vehicle |
690.00 |
310 km / 840 km = 0.369 |
| Second Vehicle |
1956.00 |
1100 km / 1282 km = 0.858 |
| |
Total end of year CCA (T) = 2646 |
|
She calculates her allowable ratio as:
| |
(E1×R1 + E2×R2) / T |
| = |
( 690.00×0.369 + 1956×0.858 ) ÷ 2646 |
| = |
( 254.61 + 1678.25 ) ÷ 2646 |
| = |
( 1932.86 ) ÷ 2646 |
| = |
0.730 (or 73%) |