CRA indicates that the exclusions under (e) of the “automobile” definition, in the case of a leased vehicle, are to be applied in the year of lease signing

The conditions in (e)(i) to (iii) for exclusion from the “automobile” definition specify that such conditions must be satisfied “in the taxation year in which it is acquired or leased.” In the case of a leased vehicle, is the referenced taxation year the year of the signing of the leasing contract, or does it apply to each of the years within the lease term?

CRA responded:

With respect to leased vehicles, the CRA is of the view that the use tests apply in the taxation year in which the lease agreement comes into effect, i.e., generally in the taxation year in which the lease agreement is signed.

Neal Armstrong. Summary of 10 October 2024 APFF Roundtable, Q.8 under s. 248(1) - automobile.