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.
Principal Issues:
Whether a motorhome should be included in Class 10.
Position TAKEN:
Should be included in Class 10.
Reasons FOR POSITION TAKEN:
A motorhome is a recreational vehicle and is not an automobile for inclusion under either Class 10.1 or Class 16.
L. Barrows
XXXXXXXXXX 953067
January 8, 1996
Dear XXXXXXXXXX:
Re: Classification of a Motorhome
This is in reply to your letter of November 15, 1995 in which you requested written confirmation that a motorhome purchased by your client would properly be included in Class 10 for capital cost allowance ("CCA") purposes.
We should advise that written confirmation of the tax implications inherent in a particular fact situation is only given by this Directorate when there is a proposed transaction which is the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R2. However, in response to your request, we can provide the following general comments which are not binding on the Department.
In our view, motorhomes are designed primarily as recreational vehicles to provide "a home away from home" for persons while travelling on vacation. As a consequence, a motorhome would not qualify for inclusion under either Class 10.1 or Class 16 since it does not constitute an "automobile" within the meaning of subsection 248(1) of the Income Tax Act (the "Act"). Therefore, in concurrence with the opinion expressed by the Edmonton Tax Services Office, we are also of the opinion that for CCA purposes the motorhome would be in included in Class 10(a) of Schedule II to the Regulations. Since there is no restriction on the amount which may be included in this class for a particular motor vehicle, the capital cost of any addition to the class is equal to its purchase price (including applicable taxes).
We trust these comments will be of assistance.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1996
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1996
Email this Content