How do I determine the opening balance for CCA on a vehicle that I bought after leasing? Buy-out value from the lease or fair market value of the vehicle at the time?

I leased a vehicle for several years and claimed it on my taxes as such.  After the lease was over, I purchased the vehicle outright (ie: without financing it).  How do I determine the opening balance for CCA purposes?  Do I use the buy-out value from the lease or do I use the fair market value of the vehicle at the time (which was about $10K higher than the buy-out value)? 

Also, which class do I enter the vehicle as?  It was more than $30K at the time that I started the initial lease, but the buyout/value at the end of the lease was less than $30K, so I'm assuming I enter it as a class 10 as opposed to a 10.1?

Answer

You would treat this as if you actually purchased the vehicle in the year. Your cost of this addition will be the amount you actually paid for the buy-out (or residual value), and you will use the date you made the buyout as your "date of acquisition". The half-year rule will apply as you have actually purchased this vehicle from leaseholder.

And yes, you would add this vehicle as a Class 10 asset. 

https://turbotax.intuit.ca/tips/what-is-capital-cost-allowance-2016

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