Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
PRINCIPAL ISSUE:
What is the CCA class for portable bridges rented by the taxpayer to others?
Position TAKEN:
Class 1.
Reasons FOR POSITION TAKEN:
Paragraph (a) of Class 1 of Schedule II. No other class
XXXXXXXXXX T. Young, CA
2003-001736
July 31, 2003
Dear XXXXXXXXXX:
Re: Capital Cost Allowance (CCA) Class of Portable Bridges
We are writing in response to your letter of April 30, 2003, concerning the correct CCA class of portable steel bridges.
You have a client who builds portable steel bridges and rents them for temporary use in the XXXXXXXXXX sector. You have asked us whether the bridges would be included in Class 1 or Class 8 of Schedule II of the Income Tax Regulations (the "Regulations").
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002, which may be found on our web site at www.ccra.gc.ca. However, we are prepared to provide the following comments, which may be of assistance to you.
As described in paragraph (a) of Class 1 in Schedule II of the Regulations, Class 1 includes:
Property not included in any other class that is
(a) a bridge;
As described in paragraph (i) of Class 8 in Schedule II of the Regulations, Class 8 includes:
Property not included in Class 1, 2, 7, 9, 11 or 30 that is
(i) a tangible capital property that is not included in another class in this Schedule except...
Because the wording of paragraph (a) of Class 1 does not specify a type of bridge, it would include a temporary bridge unless the bridge is included in another class. Further, it should be noted that the description of assets included in Class 8 specifically excludes assets included in Class 1. In the case of a taxpayer in the business of renting portable bridges to others, we are not aware of any other class that would be applicable. Therefore, in our view, the bridges would be included in Class 1.
We trust our comments will be of assistance to you.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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