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Level 2
August 4, 2026
Question

Cash Down Payment (Capital Cost Reduction)

  • August 4, 2026
  • 2 replies
  • 7 views

I leased a passenger vehicle for my self-employed business and paid a $3,000 non-refundable capital cost reduction (cash down payment). TurboTax Online does not provide a field for this amount. Under CRA rules, how is this amount claimed? Is it included in eligible lease costs, amortized, or not deductible separately?

2 replies

Level 14
August 4, 2026

A non-refundable capital cost reduction (down payment) is included in eligible lease costs and prorated over the term of the lease rather than deducted all at once. 

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agold1978Author
Level 2
August 4, 2026

Thank you. I understand that the capital cost reduction must be prorated over the lease term.

My question is about TurboTax Online specifically.

There is no field to enter the lease down payment (capital cost reduction).

Where exactly should I enter the prorated amount in TurboTax Online?

Should I:

  • add the prorated amount to the “Total lease charges paid for the year”, or
  • enter it somewhere else?

Thank you.