Incidental capital expenditure

1.3 … Where only a minor part of the expenditure is of a capital nature, the CRA's practice is to treat the whole...

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Architecture costs

1.18 A taxpayer might incur costs for architectural and engineering services used in preparing plans and estimates for a new...

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Can be depreciable property even if CCA not yet claimed

Depreciable property

1.16 Property will meet the definition of depreciable property in...

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Overview

1.26 Subsection 16.1(1) provides special rules to allow a lessee to claim CCA on certain property (other than property prescribed by...

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Example of two-year rolling start rule

1.33 …

Example 1

Company A owns a Class 1 building that is used to earn business income. Near the end of...

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Capable of producing salable product

1.34…

Example 2

Company B purchased specialized machinery for use in its manufacturing business. The...

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Overview

1.37 Subsection 13(29) provides an election in respect of property acquired for use in a long-term project. The property can be a...

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Operation of formula

1.38 Subsection 1100(2) of the Regulations limits CCA in the tax year of acquisition of most depreciable property. The claim...

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Overview

1.41 … [S]ubsection 1100(2.2) … appl[ies] to a transferee only if:

1. the property was depreciable property of the transferor, and was...

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Combined application with half-year rule

1.43 The adjustment for a short-fiscal period applies in addition to the half-year rule. For example, if...

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Overview

1.46 Subsection 18(3.1) of the Act denies the deduction, on a current basis, of certain outlays and expenses that are attributable to the...

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Access road example

1.48 …

Example 4

In order to be able to establish a sports arena at a particular location, a taxpayer builds a road to the...

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Pre-acquisition FX

1.50 ...Generally, the relevant spot rate on the date of acquisition should be used to convert the amount to Canadian dollars....

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Deemed acquisition

1.52 After 1992, where a taxpayer becomes a resident in Canada and owns depreciable property in a foreign country, pursuant to...

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Demolished building

1.56 [A] taxpayer might purchase real estate that includes a building and tear down the building relatively soon after the...

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Overview

1.60 … [T]here are special rules in paragraph 13(7)(e) applicable to depreciable property acquired from a person or partnership with...

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Non-pro-rata apportionment

1.77 … [T]he pro rata apportionment of the capital cost of a depreciable property would not be reasonable in all...

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Categories covered

1.80 … As it pertains to depreciable property, the provisions of section 68 can apply to consideration for:

• both depreciable...

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Purpose of required allocation

1.87 Paragraph 13(21.1)(a) applies where both a building and land are disposed of in the same tax year… . [T]he...

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Example of reduction of terminal loss

1.94 …

Example 9

In 2014, a taxpayer sells a building that is a rental property for $100,000. The taxpayer...

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Pro-rating of capital cost on part disposition

In para. 1.73, CRA indicated that where the is a partial disposition of a depreciable property of a...

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No terminal loss

1.101 A terminal loss cannot be claimed in the case of depreciable property for which CCA was claimed in computing income from an...

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overview

1.106 Subsection 20(16.1) of the Act provides that an excess of the UCC increases over the decreases as of the end of a tax year is not...

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Deemed disposition on asset migration

1.107 … In applying paragraph 13(7)(a) in respect of a person not resident in Canada, subsection 13(9)...

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UCC adjustment for 1^st non-statute barred year

1.113 It may be necessary to revise the capital cost of a depreciable property acquired during a...

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Choice among classes

1.120 The phrase "property that would otherwise be included in" appears in several classes in Schedule II, which could lead...

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Reasons for transfer

1.123 Subsection 13(5) contains the rules for computing the UCC of property of a prescribed class that has been transferred...

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Reassessment or deemed transfer

1.130 It sometimes happens that a taxpayer claims and is allowed CCA as a result of the property being placed in...

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