31 August 1990 Income Tax Severed Letter ACC9242 - Renovations by Business to Accommodate Disabled Persons

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.

24(1)                                             901153
                                                  S. Short
                                                  (613) 957-2134
Attention: 19(1)

Re: Renovations by Business to Accommodate Disabled Persons

Thank you for your letter of June 6 wherein you enquire about tax exemptions or deductions that are available to business that undertake renovations to accommodate disabled employees or customers.

Renovations or alterations made by a business that owns or has a leasehold interest in a property may be deductible as a current expense in the year (i.e. Fully deductible against income) or as a capital expenditure from which capital cost allowance may be claimed. Renovations or alterations can reasonably be of any type including those made specifically to assist or accommodate the disabled. In determining whether the costs of a particular renovation can be deducted against income in the year or require capitalization, consideration should be given to the guidelines in paragraph 4 of interpretation bulletin IT-128R "capital Cost Allowance - Depreciable Property", a copy of which is enclosed.

As you may be aware, the draft amendments of the Income Tax Act issued by the Honourable Michael H. Wilson, Minister of Finance in July 1990 proposes a deduction of up to $5,000 for amounts paid to an attendant who provides care to enable the disabled individual to work.

We trust our comments are of assistance to you.

Yours truly,

for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch

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