How do I determine UCC for my vehicle?

[TurboTaxHeba]

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

[tellmetax]

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

[pearl920]

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.

[nophilli]

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. 

[TurboTaxSusan]

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. 

[Milo8]

"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?

[TurboTaxSusan]

@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.

[Milo8]

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.

[TurboTaxSusan]

@Milo8 We are aware of this issue and are looking into it. We apologize for the inconvenience.

[Milo8]

Should I wait until it's fixed to submit my taxes or would I be okay to submit them?