ITCs for acquisition of passenger vehicles and aircraft
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ITCs for acquisition of passenger vehicles and aircraft
Percentage of use in commercial activities
|
Corporations and public service bodies
|
Partnerships and individuals
|
Financial institutions
|
---|---|---|---|
10% or less | None | None | % of use |
more than 10% up to 50% | None | CCA | % of use |
more than 50% to less than 90% | 100% | CCA | % of use |
90% or more | 100% | 100% | % of use |
The part of the cost of passenger vehicles eligible for an ITC is limited to the capital cost limitation, which is $30,000 (not including GST/HST or provincial sales taxes.)
If you use the vehicle or aircraft in both commercial and non-commercial activities, only the part of the CCA attributable to the commercial activities can be used to calculate your ITC.
CCA is the capital cost allowance for income tax purposes.
ITC calculations for tax years 2008 and after:
You determine your ITC annually using the following calculations:
For tax years ending on or after January 1, 2008 to June 30, 2010:
- CCA × 5/105, if you paid the GST
- CCA × 13/113 if you paid the HST
For tax years ending on or after July 1, 2010 to March 31, 2013:
- CCA × 5/105, if you paid the GST
- CCA × 12/112 if you paid the HST in British Columbia
- CCA × 15/115 if you paid the HST in Nova Scotia
- CCA × 13/113 if you paid the HST in New Brunswick, Newfoundland and Labrador, or Ontario
For tax years ending on or after April 1, 2013:
- CCA × 5/105, if you paid the GST
- CCA × 15/115 if you paid the HST in Nova Scotia
- CCA × 14/114 if you paid the HST in Prince Edward Island
- CCA × 13/113 if you paid the HST in New Brunswick, Newfoundland and Labrador or Ontario
If you paid the provincial part of the HST for a vehicle or aircraft after you brought it into a participating province from another participating province with a lower HST rate, you can claim an ITC based on the difference between the rates, using the following
calculations:
For tax years on or after July 1, 2010 to March 31, 2013:
- CCA × 3/103 into Nova Scotia from British Columbia
- CCA × 2/102 into Nova Scotia from New Brunswick, Newfoundland and Labrador, or Ontario
- CCA × 1/101 into New Brunswick, Newfoundland and Labrador, or Ontario from British Columbia
For tax years ending on or after April 1, 2013:
- CCA x 2/102 into Nova Scotia from Ontario, New Brunswick, or Newfoundland and Labrador
- CCA x 1/101 into Nova Scotia from Prince Edward Island
- CCA x 1/101 into Prince Edward Island from New Brunswick, Newfoundland and Labrador, or Ontario
If you paid the provincial part of the HST for a vehicle or aircraft after you brought it into a participating province from a non-participating province or imported it into Canada for business purposes, you can claim an ITC by using the following calculations:
For tax years ending on or after July 1, 2010 to March 31, 2013:
- CCA × 7/107 if you paid the HST in British Columbia
- CCA × 10/110 if you paid the HST in Nova Scotia
- CCA × 8/108 if you paid the HST in New Brunswick, Newfoundland and Labrador, or Ontario
For tax years ending on or after April 1, 2013:
- CCA × 10/110 if you paid the HST in Nova Scotia
- CCA × 9/109 if you paid the HST in Prince Edward Island
- CCA × 8/108 if you paid the HST in New Brunswick, and Newfoundland and Labrador, or Ontario
Forms and publications
- Guide RC4022, General Information for GST/HST Registrants
- GST/HST Memoranda Series Chapter 8-1, General Eligibility Rules
- GST/HST Memoranda Series Chapter 8-2, General Restrictions and Limitations
- Date modified:
- 2013-04-12