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.
This is in response to your enquiry of July 22, 1980 concerning the amount that is to be used as the capital cost, when claiming capital cost allowance on property that was owned prior to 1972, in calculating foreign accrual property income as defined in paragraph 95(1)(b) of the Income Tax Act for purposes of subsection 91(1) of the Act.
Historic cost is to be used as the capital cost, when claiming capital cost allowance on property that was owned prior to 1972, in calculating foreign accrual property income or defined in paragraph 95(1)(b) of the Act for purposes of subsection 91(1) of the Act. This will result in the entire capitol cost of the property being available to be written-off in calculating foreign accrual property income even though a portion or all of the capital cost has already been written-off in calculating the income of the foreign affiliate for the purposes of other tax jurisdictions.
We trust that this information will be of assistance to you.
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© Her Majesty the Queen in Right of Canada, 1980
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© Sa Majesté la Reine du Chef du Canada, 1980
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