Hello,
Vehicle purchased in 2017 for personal use till 2023, it was used for first year for Uber 2023.
What is UCC?
Since you are bringing a personal use vehicle into the business, you will need to find the fair market value (FMV) of this vehicle close to the date the vehicle is brought into the business. This will be the UCC.
During covid and with the computer chip shortage, used vehicles increased in value. For this reason, I suggest looking through the Buy and Sell, etc, to find several vehicles with similar features and in similar shape and use an average price of those vehicles as the FMV. Save PDF copies or print the vehicle listings to keep in the tax file in case CRA ever questions how the FMV was attained.
Another way to do it is to start with 2017 when the vehicle was purchased and manually calculate the UCC for each year until you reach 2023. This calculation will probably result in a much lower value as it doesn’t consider that used vehicles increased in price since covid.
Hope this helps.
Autotrader is a great research tool for that.
Should the first year rule be applied?
You stated in your initial post that the vehicle was brought into the business during the year: “It was used first year for Uber 2023”.
This tells me that the Uber business started midway through 2023 at which point the personal use vehicle was also brought into the business on that starting date.
If you read the T4002 Self-Employment guide (currently the 2022 version as the 2023 version isn’t available yet), you can read up on the Available for Use rules.
At the bottom of Page 68 of this PDF guide, they give the example of a business that started June 1st to Dec. 31st = 214 days. CCA Needs to be prorated for this period. In the example, if CCA was $3,500, the calculation would be ($3,500 x 214 / 365) = $2,052.
I would suggest it would be safe to follow this method in claiming the CCA for this vehicle. Assign it a vehicle Class (10 or 10.1) based on the FMV on the day it is brought into the business.