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 Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
SUBJECT: AVAILABLE FOR USE RULE-CCA SECTION: 20(1)(a), REG 1100(1), CLASS 3, 13(28)(b)]
April 22, 1992
General Audit Services Section Business and General
Marcel Clement, Chief Division
Glen Thornley
Attention: Phil Jolie (613) 957-2101
920983
Available for Use Rule
This is in reply to your memorandum of March 9, 1992 with attached memo from North York District Office and your draft reply to that memo on which you request our comments.
The main issue is whether a purchased building requiring extensive renovations is subject to the available for use rules in subsection 13(28) of the Income Tax Act.
We agree with your conclusion that the purchased building meets the conditions of paragraph 13(28)(b), i.e. "the construction of the building is complete". We also agree that the postamble to subsection 13(28) requires that the renovations to the existing building be treated as "a building separate from the particular building". Thus, the taxpayer is entitled to claim capital cost allowance on the purchased building in the year of acquisition but the renovations, being a separate building, are not available for capital cost allowances until 1991.
We trust that this is the confirmation you require.
E. Wheeler
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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