CRA indicates that a used machine acquisition on current account was ineligible for SR&ED credit

The Claimant purchased a used machine which it modified as part of its SR&ED project and which was accepted as being purchased on current account as it was transformed in the prosecution of the SR&ED. The Directorate found that this expenditure was a prescribed expenditure pursuant to Reg. 2902(b)(ii), i.e., the expenditure was in respect of “the acquisition of property that has been used … for any purpose whatever before it was acquired.” It indicated in this regard that the acquisition cost being a current expenditure was not inconsistent with there having been an “acquisition of property.”

Neal Armstrong. Summary of 26 October 2022 Internal T.I. 2021-0915091I7 under Reg. 2902(b)(ii).