81 CR - Q.23

The cost of property to a person cannot exceed the lesser of the purchase price of the property acquired and the amount put "at risk" by the taxpayer. A taxpayer will be at risk in the amount of a limited recourse loan where the funds for repayment of the loan will be generated from the current business of the taxpayer, the lender is an arm's length person and the taxpayer has a net fair market value equity in the property.

Guidelines re calculation of "equity interest".

A limited partnership may not deduct the expenses incurred, prior to the formation of such limited partnership, by a promoter who later charges those expenses to the partnership.

A partner who is a member of a partnership that carries on an active business is carrying on that active business and is using the partnership assets in that business. [C.R.: 248(1) - "small business corporation"]

Where a partnership uses assets of a partner, the partner is entitled to claim CCA provided that a fair market value rental is charged to the partnership.