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How to Handle a Terminal Loss on a Vehicle (Class 10) in Canada

Written by Arani Tharmalingam
Updated today

When you sell a business-use vehicle and it’s the last asset in its CCA class, you may have a terminal loss if the remaining UCC is higher than the sale price.

The Issue

Many tax tools don’t detect this automatically. They may continue calculating CCA and leave a UCC balance, instead of recognizing the loss.

What to Do

  1. Calculate the loss
    Terminal Loss = UCC − Sale Price
    Then apply your business-use %

    Example:
    ($6,300 − $900) × 30% = $1,620

  2. Do not claim CCA
    Leave the vehicle CCA section empty

  3. Report the loss
    Enter it under Other Expenses (Line 9270)

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