If I purchased an EV for Uber and to manage short term rental in 2021, can I use the 100% accelerated CCA for it in 2021? or split 50/50 for 2021

[cchung]

I also have some personal use of the vehicle, but Uber will take the majority of the mileage used overall, so the personal use portion might not be significant.

[AD0123456]

Zero Emission Vehicles used for rent and taxi cabs fall under Class 55 and can claim a maximum of up to 100% CCA rate if the vehicle meets the eligibility criteria mentioned in the below CRA links, 

Zero-Emission Vehicles-Class 55 for automobiles for lease or rent and taxicabs 

You can also check these TurboTax FAQ Links, 

What is the capital cost allowance (CCA) on accelerated investment incentive properties and zero-emi... 

https://turbotax.intuit.ca/tips/guide-uber-partners-7522

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[cchung]

So I took delivery of the EV late October.  Can I depreciate the EV 100% this year and depreciate my other vehicle for the 2021 January to October use in year 2022 to maximize deduction?  

And how about splitting the depreciation of the EV by depreciating 20% for 2021 and 80% for 2022?

[cchung]

Any update?

[TurboTaxSusan]

In your case, you are using the vehicle for two different purposes – to earn rental income and to earn income as a rideshare driver. In both cases, your car would be Class 54 (if it meets the ZEV eligibility criteria). Class 54 cars purchased between March 18, 2019, and before 2024 have a CCA rate of 100%. So, you can take the full 100% if you would like. But as you are using your vehicle to earn 2 different types of income, you can’t just enter your CCA in one place – you would have to enter part of it on your rental income form and your self-employment form. And you can’t include any personal use, even if it’s small.

Taking CCA is optional, so you can take only a portion this year or none at all. Anything that you don’t claim this year will remain in your UCC balance for future years. Since you can’t use CCA to create or increase a rental loss, you may not be able to take the full amount there.

[cchung]

 I took delivery of the vehicle late 2021, the ridesharing income is not that high for November and December 2021.  if I deduct 100% ($55000) in 2021, can the deduction applied to my other income such as investments and salaried income?  Or should I delay claiming any CCA till 2022 where ridesharing income will be higher?

[TurboTaxSusan]

You can’t claim CCA against other income, only the income that you earned using the car (or other asset). Anything that you don’t claim this year will remain in your UCC balance, so you can use it next year if you need to.

In your case, you will have 2 separate UCC balances – one under rental income and one under self-employment. But if you feel that your self-employment (Uber) income will be large enough in the future, you may want to consider just entering the car in the self-employment CCA section, and only deduct vehicle expenses (fuel, etc…) on the rental income.