CCA Class 54 is not calculating correctly. It is taking an enhanced first year rate of 100% rather than 75%. This is causing a huge difference in the CCA deduction.

Forum|Forum|2 months ago
April 3, 2026
2 replies
1 view

Called Turbotax support and spent hours speaking to multiple representatives/tax experts yet none of them have any clue about the tax accounting rules here in Canada. Was promised a callback about getting this fixed but never heard back.

Best answer by TurboTax_Susan

Hi Susan, yes of course class 54 is 30% but the 75% we are referring to is the net enhanced deduction. The factor in Turbotax desktop of 2 1/3 is only applicable to years prior to 2024. For 2024-2027 the factor should be 1 1/2. Anyone who filed using Turbotax desktop submitted incorrect returns if they used the enhanced class 54 deduction in 2024 or 2025 based on the 2 1/3 factor Turbotax is using right now. I'm sure any CPA on your team can confirm this and if not please reference CRA: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html#class54class55

Please look into getting this fixed asap. Thank you

@Cheng42 According to the CRA's 2025 T2125 form: Note 7: Under proposed changes, for ZEVs acquired after 2024 and RIIPs that became available for use in 2025, the relevant factors are 3 (Class 44), 2 1/3 (Classes 43.1, 46, 54, and 56), 1 1/2 (Class 55), 1 (Class 53), 9/11 (Class 50), and 0 (Classes 12, 13, 14, 15, and 59). The factor is 1/2 for any
remaining RIIPs not listed in this note.

The link that you provided was last modified: 2025-06-05

The T2125 was last modified: 2026-02-11

So you may want to let the CRA know that they have information that conflicts with the actual forms on their website.

user17734123570

Level 2

I am having the same issue. I have updated the software. I have even deleted the form and restarted and its still the same. Do I just change the amount claimed to 75%?

TurboTax_Susan

Level 15

@user17734123570 Are you using TurboTax Desktop or TurboTax Do It Yourself (Online)? What are you claiming CCA for ex: Self-employment, rental income?

user17734123570

Level 2

I am using desktop premier. Self employment. for a Class 54 ZEV purchased in 2025 it should an enhanced rate of 75%. It is using a enhanced rate of 100%

Cheng42Author

Level 2

I am using the desktop version as well but standard. Everything is updated. Putting only 75% of the cost as CCA will cause the next year to have issues since it will carry forward nothing as your undepreciated cost base so Turbotax needs to actually fix the percentage it's applying.