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Catherine uses an automobile in her unincorporated business. She paid $157,000 for a Tesla Model X in 2019 and took the maximum amount of CCA
Catherine uses an automobile in her unincorporated business. She paid $157,000 for a Tesla Model X in 2019 and took the maximum amount of CCA in the year. She financed this purchase with a bank loan of $130,000. For 2020, the interest on her bank loan was $6,500. She uses the Tesla entirely for business purposes and the total operating costs in 2020 were $11,400. Catherine would like to know what is the maximum that she can deduct from her business income in relation to her automobile in 2020.
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