If I purchase a truck for my business at a cost of $63,020.00 which includes HST of $8,220.00.
I will be paying on this over 5 years.
My question, can I claim the full amount of HST on my HST return or do I have to claim the HST over the life of the liability?
Claim the full amount. You are purchasing the truck "now", paying the full amount, paying with the proceeds of a loan. What you are paying over 5 years is the loan (and interest), not the purchase price and HST which you pay "now".
What about the CCA? Is there any special rules for that as it applies to the purchase of this truck?
Would this also apply to the purchase of my commercial insurance. The total is 3600 including HST, I am paying 300 per month for the next year?
One other question - If my company purchases a passenger vehicle (small suv) for making smaller customer deliveries. How would this be handled under the HST rules, regarding the CCA on Passenger vehicles?
Thanks in advance for clarifying all this for me.
The same logic applies to CCA for the truck, nothing special. Your monthly payments are for principal and interest, no HST. There's no need for any "special rules".
What does "this" mean with respect to the insurance? Are you paying monthly premiums, or are you making payments of principal and interest on an annual policy that has been financed? In any case - sorry, I don't know about HST on insurance. There is no GST on insurance; there is PST in Ontario, not HST, so I don't know how this applies.
There is a limit on both the CCA and GST/HST that can be claimed on passenger vehicles. Also - usually each vehicle must be recorded in a separate "Class 10.1" for CCA, not pooled; and there is no terminal loss allowed on Class 10.1. Apparently some accountants are disregarding the Class 10.1 rule (by pooling these vehicles, up to the allowed limit, in Class 10) in order to retain the possibility of a future terminal loss claim, but I don't know whether there have been or might be any problems about this with CRA.
With this many questions you REALLY should talk to your own accountant. There may be other issues you aren't even aware of.
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