T1
402 Business income


Print this page Forward this document    GST and Ontario PST portion on a class 10.1 vehicle addition

Program(s) affected: T1 Document created: 03 16, 2008
Tax year(s): 2008 Document last modified:
Version(s): 12.01, 12.10, 12.11, 12.13 Problem status: Fixed in v12.20

My client is a resident of Ontario and bought a class 10.1 passenger vehicle in 2008. The program is not calculating the capital cost limit for a passenger vehicle properly. What can I do?

The capital cost limit for a class 10.1 passenger vehicle is $30,000. The calculation of the GST and Ontario PST on $30,000 is as follows:
    GST at 5% of $30,000 = $1,500; and
    PST at 8% of $30,000 = $2,400.

The program does not calculate the portion relating to GST and Ontario PST properly and limits the capital cost to $33,600 instead of $33,900.

As a workaround, use the Adjust-Curr keyword, enter "Missing GST and PST portion" in the description field and "300" in the $ field. Note that if you recalculate this tax return with a subsequent version in tax year 2008, you are going to have to remove this entry in order to obtain the correct amount.