HST on a vehicle purchase
QuickBooks Canada : Pro 2012Is the HST paid on a vehicle purchase claimable as an ITC?
Thanks.
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bJR8duqL8r4yUOacwZ5xHE
01/18/12 9:35pm PST
Viewed by asker 02/13/12 1:47pm PST
Viewed by asker 02/13/12 1:47pm PST
7 Replies
qbqcca
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Questions answered: 913
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01/18/12 9:38pm PST
Absolutely!
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01/18/12 9:46pm PST
The truck was purchased in December, and is financed. Do I claim 100% of the HST for that quarter, or do I have to break it up for each monthly payment?
01/18/12 9:55pm PST
The entry for the truck should be:-
Asset 24,000
HST 1,2000
Loan Payable 25,200
The Monthly Payment goes against Loan Payable.
01/19/12 11:38am PST
Thank you for your help.
Could you please tell me how the interest on the loan recorded?
I just found the loan manager. Can I use that, easily, or is it best to do it on my own?
01/19/12 1:45pm PST
To be honest I have never used the loan manager, I like to do it myself.
Contact the Financial Instituion which is financing the truck and ask them for an Amoritization Schedule for the loan.
With that in hand, calcalulate the interest payable within each of you Fiscal Years, divide the interest for each year by the number of months the loan falls within that year, and use that result as your interest cost for each month in that year.
You could set up a Memorize transaction to make your life easier.
KeithCA
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Questions answered: 9
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ProAdvisor Canada
Members of the QuickBooks ProAdvisor Program
01/22/12 5:59pm PST
Be very careful in taking advice given when all of the facts are not known.
The answer to your question depends on several facts:
Are you incorporated or not?
Is there any personal use of the vehicle and if so what percentage?
Is this a class 10.1 vehicle? ie. a passenger vehicle with a cost in excess of $30,000.
All of these factors and others determine what portion of the HST can be claimed as an ITC. They also determine the timing of the claim.
Bottom line - consult your CA.
02/10/12 3:02pm PST
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Thanks for all your help, guys! I got it figured out.
