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March 26, 2022
Question

Does trading in a vehicle count as selling it for employment expense section

  • March 26, 2022
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    1 reply

    March 27, 2022

    Yes, trading in a vehicle would count as disposing of the vehicle since you technically disposed of the vehicle for another vehicle. 

    You would enter the applicable information under this section: (Enter the details of your vehicle if owned (not leased) and you want to claim Capital Cost Allowance (CCA)). Under the Employment Related Driving page.

     

    In this section: (If you sold the vehicle during the year, enter the total proceeds of sale)

    Disposition” refers to when you dispose of or get rid of a property. In most cases, the proceeds of disposition is the amount you received for the property.

    However, if you traded in the property to buy a new one, the proceeds of disposition is the amount you received for the trade-in. For example, if you trade in your old car and receive a $4,000 credit toward the new one, the proceeds of disposition is $4,000.

     

    For more information on how to declare motor vehicle expenses please see these TurboTax articles:

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