If you have claimed Capital Cost Allowance (CCA) in the past on your vehicle used for Business or Employment, you will have a number left at the end of the year known as Undepreciated Capital Cost or UCC.
If this is your first time claiming CCA on that vehicle, you will not have a UCC amount. UCC is the balance of the capital cost left for further depreciation at any given time.
For example, if you claimed the full 30% CCA on a $10,000 vehicle last year, your UCC would be $7,000
( $10,000 - $3,000 = $7,000 UCC)
If you have claimed Capital Cost Allowance (CCA) in the past on your vehicle used for Business or Employment, you will have a number left at the end of the year known as Undepreciated Capital Cost or UCC.
If this is your first time claiming CCA on that vehicle, you will not have a UCC amount. UCC is the balance of the capital cost left for further depreciation at any given time.
For example, if you claimed the full 30% CCA on a $10,000 vehicle last year, your UCC would be $7,000
( $10,000 - $3,000 = $7,000 UCC)
hi, i started with Uber June 2019. I have a car loan Nov 2018. From Nov 2018 to May 2019, the car was for personal use. What will |I put in UCC? tubo tax does not accept if I do not put an amount. thanks.
@sparkfire,
As you only started using your car for business purposes in June 2019, you will not have a UCC amount. Instead, you need to add your vehicle as a "new addition" The reason for this is in the first year you claim Capital Cost Allowance (CCA or depreciation) on this vehicle, you fall under the "half-year rule" and can only claim 50% of the allowable CCA. But don't worry, TurboTax will calculate these amounts for you based on your entries!
For a vehicle you owned prior to starting your business or using it for business purposes, you'll have to make a reasonable estimate of the Fair Market Value (FMV) of your vehicle on the date you started using it for Business or Employment use (June 2019).
You could get a fairly accurate calculation by using the actual purchase price - minus - the amount you could have claimed for CCA if you had used it starting on the purchase date. Or you could compare the selling price of similar vehicles.
Example for a $29,000 vehicle purchased in 2018:
$29,000 x 15% (half year rule) = $4,350 (this is the amount you could have claimed)
$29,000 - 4,350 = $24,650 Use this figure as the cost of your "addition". If you were questioned by CRA as to how you came up with this figure, you would be able to show them you used this method of calculation and considered it to be reasonable.
Hello TurboTax Kim,
Thank you the response. When you say "new addition" is this, add a vehicle, the Capital Cost Allowance Chart for Vehicle:
Date vehicle acquired: (dd/mm/yyyy) I will put 01/01/2019
if you purchased the vehicle during the year, enter the total cost before taxes= ???which is correct below A or B
computation A: (including hst)x.15=4746. next [social security number removed]= 27254
computation B: 28000(excluding hst or total vehicle price/MSRP) x .15=4200, next [social security number removed]=223800
also, is there a fee to be a member of turbo tax community? like posting here.
thanks, sparkfire
Hi there,
I'm confused on the UCC calculation with respect to the CCA from the previous year. It says online that the UCC is the following:
The amounts left on your assets for further depreciation.
If this is your first year of claiming Capital Cost Allowance on an asset, you won’t need to enter any amount.
Your undepreciated capital cost (UCC) is your running balance for each capital cost allowance (CCA) class from last year.
You can find this info on last year's return, or, if you transfered your TurboTax return from last year into this year's return, this amount will already be filled in for you.
So in 2018, I bought a new car at the beginning of the year for $22,000. I used my car 42% of the time for work purposes. The rest of the time for personal purposes. On my 2018 return i claimed the class 10 with a 30% rate.
Turbo tax said that my CCA for the 2018 was about $1600.
For my 2019 tax return, i'm confused on what to enter in for the UCC? Can you help me?
I bought my car in 28 September, 2018 and filed tax with Professional accountant in 2018. I purchased my car @ 11300 dollars. I gave him my purchase price and I think he put CCA as 11,300 CAD. I did not get UCC value from him this year. I started UBER from 11 November, 2018. How much UCC I should put at the begining of this year?
Assuming your accountant claimed 15% your UCC balance at the start of the year would be 9605. As CCA is an optional claim if your accountant did not claim your UCC would be 11300.
We hope the above brought clarity to the matter.
Hi TurboTaxKim,
What if I skipped CCA for a year or two. How do I figure out the new UCC for the current tax year? Thanks so much in advance!
Hello @TurboTaxKim ,
It looks like my situation is slightly different from the other ppl in this question thread...
I'm trying to establish my UCC under these parameters :
1. Purchased new personal vehicle (A) in 2018.
2. Changed employment and used vehicle A for business use for the first 3 months of that new employment (Sept, Oct, Nov 2019)
3. On December 1, 2019, I leased Vehicle B, and will use the lease payments system instead of the CCA depreciation from then on.
Questions :
1. How do I establish the initial (Fair Value / UCC) of Vehicle A starting Sept 2019? I know there's a maximum of $30,000 starting value, and since this is the first year I'm utilizing the CCA, can I still use the max start value?
Or should I apply the depreciation for 2018, and take the lower amount as a starting point in 2019?
Vehicle A retailed for approximately $60K in 2018.
Example 1 : $30,000 *.3(for 2018) = $21,000 UCC for 2019 ?
Example 2 : $30,000 UCC for 2019 ?
2. Since I only used Vehicle A for 3 months, do I use the half-year rule ? or half of the Half-year rule % ?
3. In December, when I leased Vehicle B, I kept Vehicle A as a personal vehicle(Did not sell asset). How do I enter that in TurboTax ?
Thank you in advance !
Cheers,
To answer each question, you need to find the type of your vehicle (passenger or motor:(
1. Find the FMV of your vehicle in Sep 2019. You can use websites such as https://www.carfax.ca/car-valuation
If your car is worth $30,000 or less before tax, use the max threshold of $30,000 as your CCA class 10
However, if the FMV is less then use the actual estimated value,
If the FMV is more than $30,000 before tax, use the actual FMV in your CCA class 10.1
2. Use the half-year rule to claim the CCA
You will need to prorate the expenses based on the mileage you used:
for example;
If your business use in the three months was 20,000 km while the total use for business and personal is 40,000 km, multiply the expenses and the CCA by 20,000/40,000
make sure you use the same rate for expenses accrued in the three months (you cannot claim the expenses prior to the business use of the car).
3. Your vehicle (A) should be declared as a deemed disposition in Dec (which is the FMV in Dec). Since you have already claimed CCA for it, you will need to assume that you disposed it in Dec and report any difference in values between the FMV in Sep and the FMV in Dec as Capital Gain. And the difference in value between the FMV in Dec and the depreciable value as recapture
Keep in mind you don't have to claim the CCA on the vehicle (A) if it is not worth it. you can use the mileage rate to claim other expenses only.
Refer to the first link to check how to claim the lease amount.
I hope this was helpful
I bought my Vehicle on September 03, 2019, for $45,000.00 and used it fully for work. ( 2019 Hyundai Tucson, All-wheel-drive, Essential Edition, with 45 thousand kilometers to date)
The total balance remaining on the vehicle loan at the beginning of 2021 is $30,998.58.
Based on carfax.ca the Vehicle average value as of today is $ 24,298.00
I never claim Capital Cost Allowance (CCA) for this vehicle before.
I am still using the vehicle for work.
How do I find out what is my undepreciated capital cost (UCC) at the beginning of the year?
How do I input this data in TurboTax ?
Which options below are correct?
Option A
-Class of vehicle 10:30%
-Date vehicle acquired: (01/01/2021)
-Claim AII/ZEV: Yes
-Undepreciated capital cost (UCC) at the beginning of the year: $0.00
-If you purchased the vehicle during the year, enter the total cost before taxes (only claim one vehicle per step; click Enter Another Vehicle if you have more than one vehicle to claim): $ 30,998.58
Option B
-Class of vehicle 10:30%
-Date vehicle acquired: (03/09/2019)
-Claim AII/ZEV: Yes
-Undepreciated capital cost (UCC) at the beginning of the year: $30,998.58
-If you purchased the vehicle during the year, enter the total cost before taxes (only claim one vehicle per step; click Enter Another Vehicle if you have more than one vehicle to claim): $ 0.00
Option C
-Class of vehicle 10:30%
-Date vehicle acquired: (03/09/2019)
-Claim AII/ZEV: Yes
-Undepreciated capital cost (UCC) at the beginning of the year: $24,298.00
-If you purchased the vehicle during the year, enter the total cost before taxes (only claim one vehicle per step; click Enter Another Vehicle if you have more than one vehicle to claim): $ 0.00
Hello, I bought my car on December 31, 2018. I began to drive it as a Uber courier from August to December 2021. How do I enter the UCC of the year? My car is $28000 before tax.
When I use the CRA worksheets it reduces the vehicle addition and vehicle dispositions by the amount of use for the business but does not reduce undepreciated CC (UCC) at the start of the year. Why does Turbo Tax reduce the UCC by the vehicle usage.
The UCC is doesn't get changed by vehicle usage because it's what was calculated last year. It's what's left in the class after you took CCA last year.
The CCA amount that is claimed is changed because that's based on your usage this year.
"If this is your first time claiming CCA on that vehicle, you will not have a UCC amount."
When I enter my vehicle, it asks when it was acquired. I purchased it in 2022, its my personal one. I only started using it in my self employment in 2023. So it says I have to enter a UCC amount., it won't take 0 as an answer. What am I doing wrong?? Do I need to put Jan 2023 for the acquired date then?
@Milo8 You would need to enter the date that you started using the vehicle for business. The cost of the vehicle would be it's Fair Market Value at that date.
Thank you, now that i've entered all that, in the summary it shows that the vehicle expenses have not started but I filled everything out for it.
@Milo8 We are aware of this issue and are looking into it. We apologize for the inconvenience.
Should I wait until it's fixed to submit my taxes or would I be okay to submit them?
Yes, I would suggest waiting to submit your taxes. Our team is working on it as we speak. It shouldn't be too much longer. We will advise you as soon as the issue is corrected.
Thank you for your patience.
I just wanted to confirm it’s fixed? It looks fixed on my end but wanted to make sure before I submit