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.
RULINGS DIRECTORATE
CORRESPONDENCE SUMMARY
Principal Issues:
Whether the election under subsection 13(16) is available where a vessel is partially disposed.
Position TAKEN:
Yes.
Reasons FOR POSITION TAKEN:
Legislation contemplates partial dispositions. The language of subsection 13(16) does not add a condition similar to subsection 20(16) that a taxpayer no longer own any property of a prescribed class or subsection 24(1).
951240
XXXXXXXXXX G. Donell
Attention: XXXXXXXXXX
August 16, 1995
Dear Sir:
Re: Capital Cost Allowance - Subsection 13(16)
This is in reply to your letter of May 3, 1995 in which you have asked us for our opinion on the meaning of the term "disposed of" as that term is used in subsection 13(16) of the Income Tax Act (the "Act") and, more particularly, whether such term would include a partial disposition of a vessel.
In our view, a disposition of a vessel in subsection 13(16) of the Act, includes a partial disposition and consequently a taxpayer would therefore not be precluded from electing under subsection 13(16) in respect of the proceeds of disposition arising upon a partial disposition.
We trust that the above comments are of assistance to you.
Yours truly,
Chief
Financial Institutions Section
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy & Legislation Branch
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