What would I report on a vehicle that was used for UBER, but got into a car accident during the year..is it deemed to be disposed ? if so, Do i report a gain ?

[zakareaali730]

Would the car have to be disposed of ?

I bought a new car instead of it and would like to claim the CCA on the new car. But I still have the old car there.... wondering what the disposition amount would be since I dont think the payout if taxable.. Help?

[TurboTaxSusan]

You would have to “dispose” the car if you no longer use it for business purposes, because if you don’t you may end up taking CCA on the car even though you no longer use it. That could cause problems with the CRA if they find out. The proceeds of disposition would be the amount that you got when you got rid of the car (if any). So if you sold it for scrap, or got a trade in amount when you bought the new car, that would be the proceeds of disposition.

If the new car is in the same class as the old car, then you won’t get a terminal loss. You can’t get a gain unless you sold the car for more than it was worth, which is unlikely if the car was in an accident.